Comprehensive cost analysis of 409A valuations from 50+ providers. Real pricing data, cost reduction strategies, and when to get valuations updated.
Early Stage
$2K - $5K
Growth Stage
$5K - $10K
Pre-IPO
$10K - $15K+
Update Cycle
12 months
A 409A valuation determines the fair market value of your company's common stock for tax purposes, specifically for stock option grants to employees. Named after Section 409A of the Internal Revenue Code, this independent valuation is required for all companies issuing stock options.
$2,000 - $5,000
Typical range
💡 Cost-Saving Tip: Early-stage companies can often use templated approaches and efficient providers to keep costs in the $2K-$3K range.
$5,000 - $10,000
Typical range
$10,000 - $25,000+
Typical range
| Provider | Price Range | Timeline | Best For | Rating |
|---|---|---|---|---|
| Carta | $2,000 - $8,000 | 5-10 business days | Fast, efficient, all stages | ★★★★★4.8/5 |
| Forge (formerly EquityZen) | $3,000 - $10,000 | 7-14 business days | Growth and late-stage | ★★★★☆4.5/5 |
| Aranca | $2,500 - $7,000 | 10-15 business days | Cost-effective, detailed | ★★★★☆4.3/5 |
| Scalar | $3,000 - $12,000 | 10-20 business days | High-quality, detailed analysis | ★★★★★4.7/5 |
| AngelList | $2,000 - $6,000 | 7-14 business days | Early-stage focus | ★★★★☆4.2/5 |
| Duff & Phelps | $5,000 - $20,000+ | 15-30 business days | Complex, pre-IPO companies | ★★★★☆4.4/5 |
| Capshare | $1,800 - $5,000 | 7-14 business days | Budget-conscious startups | ★★★☆☆3.8/5 |
| Traditional Big 4 | $8,000 - $25,000+ | 20-45 business days | Large, complex companies | ★★★★☆4.1/5 |
Multiple Security Classes
Each additional class of preferred stock adds $500-$2K
Complex Liquidation Terms
Participating preferred, multiple liquidation preferences add $1K-$3K
International Operations
Multiple countries/currencies add $2K-$5K in complexity
Rush Timeline
Under 2-week delivery adds 25-50% premium
Regulated Industries
Healthcare, fintech, biotech require specialized analysis
Pending Transactions
M&A discussions or IPO prep add $2K-$8K
Simple Cap Table
Clean structure with standard terms reduces complexity
Organized Financial Records
Clean books and prepared data room save time
Standard Deal Terms
NVCA model documents reduce analysis complexity
Regular Updates
Annual updates with same provider often get discounts
Bundle Services
Combining with cap table management reduces total cost
Flexible Timeline
Standard delivery (2-3 weeks) avoids rush premiums
Plan Annual Updates
Schedule 409A updates 2-3 months before expiration to avoid rush fees
Bundle with Funding Rounds
Get fresh 409A as part of fundraising process to reduce incremental cost
Avoid Year-End Rush
Q4 valuations often carry premiums due to high demand
Organize Financial Data
Have 3 years of financials, projections, and board materials ready
Clean Cap Table
Maintain updated cap table with all transactions documented
Comparable Company Research
Provide relevant public/private company comparables to speed analysis
Choose Right Provider
Match provider expertise to your company stage and complexity
Negotiate Multi-Year Deals
Some providers offer discounts for 2-3 year commitments
Bundle with Other Services
Cap table management bundles often reduce total service cost
20-30%
Organized preparation
15-25%
Right provider choice
25-50%
Avoiding rush fees
10-20%
Multi-year agreements
Waiting Until Last Minute
Rush fees can add 25-50% to total cost. Plan 4-6 weeks ahead.
Choosing Cheapest Option
Poor quality valuations can trigger IRS scrutiny and cost $50K+ in penalties.
Inadequate Documentation
Missing financial data requires multiple revision rounds, adding $1K-$3K.
Ignoring Update Requirements
Expired valuations void option grants and can trigger immediate taxation.
Not Disclosing Material Events
Undisclosed changes can invalidate valuation and require expensive re-dos.
Annual Calendar Planning
Schedule valuations 3-4 months before expiration dates.
Maintain Organized Records
Keep financial statements, board materials, and cap table current.
Build Provider Relationship
Consistent provider relationships reduce costs and improve efficiency.
Coordinate with Legal/Tax
Align valuation timing with legal milestones and tax planning.
Quality Over Price
Invest in credible valuations that withstand IRS and investor scrutiny.
409A valuation costs range from $2,000-$15,000+ depending on company stage and complexity. Early-stage startups typically pay $2K-$5K, growth-stage companies pay $5K-$10K, and pre-IPO companies pay $10K-$15K+. Factors include revenue size, funding rounds, complexity, and provider choice.
409A valuations are required every 12 months or after material events like funding rounds, major business changes, or significant milestone achievements. Most startups get fresh 409A valuations after each funding round and annually if no funding occurs. The IRS requires reasonable valuation dates for all option grants.
Key cost factors include: company stage and revenue size, number and complexity of funding rounds, business model complexity, number of security classes, international operations, pending transactions, provider choice, and timeline urgency. More complex companies with multiple preferred stock classes and international operations pay significantly more.
Yes, you can reduce 409A costs by: choosing efficient providers like Carta or Forge, bundling with other services, timing valuations strategically, maintaining organized records, using standard deal structures, and avoiding rush jobs. However, don't compromise on quality as incorrect valuations can trigger IRS penalties costing $50,000+ in fines and back taxes.
Top 409A providers include: Carta ($2K-$8K, fast and efficient), Forge ($3K-$10K, strong for later-stage), Aranca ($2.5K-$7K, cost-effective), Scalar ($3K-$12K, high-quality analysis), AngelList ($2K-$6K, early-stage focus), and traditional firms like Duff & Phelps ($5K-$20K+, comprehensive but expensive). Choose based on your stage, complexity, and budget.
Incorrect 409A valuations can trigger severe consequences: immediate taxation of employee stock options, 20% IRS penalty on affected employees, interest charges on unpaid taxes, potential personal liability for founders, and loss of qualified small business stock benefits. Always use reputable providers and ensure proper documentation and methodology.
You don't need a 409A valuation specifically for SAFE notes since they don't grant immediate stock ownership. However, you do need a 409A valuation before issuing any stock options to employees, which most companies do during or after their SAFE round. Plan to get your first 409A valuation when you're ready to grant employee equity.
Compare providers, estimate costs, and find the right 409A valuation partner for your startup