The SVB fiasco is the talk of the business town now. Silicon Valley Bank financed startups beyond the Bay Area. It supported half of all US venture-backed firms and 44% of US venture-backed healthcare and technology companies that went public in 2022. SVB may reveal its risk management and other procedures, which have caused many concerns in the coming days. Even safe startup investors are worried about the failure’s ramifications. With all these in the picture, Valuation is critical to a startup’s future.
We at Eqvista are announcing a new monthly payment plan to support the business community during this challenging time. Our Startup Package’s revised monthly fee for a 409a valuation is $89 per month. As a result of our affordable yet accurate valuations, startups can demonstrate their value to prospective backers while showcasing their company’s potential for expansion. We have detailed how a 409a valuation for startups works and how to use our affordable 409a valuation services to take your business to the next level amidst economic uncertainty.
409a Valuation for Startups
A 409A valuation estimates the value of the common shares in your startup entity. Although it’s simple to check the price of a publicly listed stock, private companies need an impartial assessment to determine their stock’s actual value. Before the Internal Revenue Service (IRS) established the 409A, startups required a method to determine the value of stock options they granted. They must now have an appraisal of their firm to determine the fair market value of stock options.
The 409A valuation procedure may not be a fascinating item on the to-do list of a startup entrepreneur, but it is essential to the long-term survival of your firm. Regularly conducting a 409A valuation before giving stock options to workers helps ensure your fair market value’s accuracy. An evaluation following Section 409A is necessary for the following purposes:
- To comply with Section 409A, business owners may determine the value of their shares at a level that provides them with a safe harbor.
- Workers can safeguard themselves against any future tax-related problems.
- The owner and the business are shielded from the financial fallout of any potential legal or tax action.
- Management and potential investors may understand the company’s financial health.
- The valuation protects the corporation and its workers from any potential fines imposed by the Internal Revenue Service due to an IRS audit.
Why Choose Eqvista for Your 409a Valuation?
Each year, over 500 409A valuations are entrusted with Eqvista, making it the nation’s foremost supplier of 409a valuation and cap table management services. We offer appraisals at a lower cost and in less time than conventional service providers by combining state-of-the-art technology with extensive business experience. Here are more crucial reasons for choosing Eqvista for your 409a valuation.
- You can enjoy unlimited service for one year for as many 409A valuations as needed.
- Our NACVA-certified valuation team consists of highly-trained and experienced analysts available to assist you with every aspect of the valuation process.
- We have collaborated with a wide range of businesses in different fields.
- We offer cost-effective valuation reports of the highest quality
- Our expert group will determine your company’s worth using tried-and-true methods and cutting-edge research.
- Our 409A valuation services are quick, accurate, and can withstand an audit without harming your budget.
Terms of the Offer
For businesses that have suffered because of the SVB bankruptcy, Eqvista’s new payment arrangement comes as a welcome relief. We provide low-cost 409a valuation services, with a monthly price of $89 for our Startup Package if you sign up for an annual plan. At this special price, your new business may immediately begin using Eqvista’s valuation service, which is both accurate and efficient.
Note: Our Startup Package is only applicable to pre-revenue companies that have been in business for less than a year.
If, on the other hand, you decide that you no longer want to participate in the plan, we will settle the balance of any payments you have already made. Our price structure may be surprising given that the industry standard for 409a valuation services is a yearly membership fee of $2,000 to $5,000. However, we have set our sights on keeping our services within your financial reach.
Secure An Affordable 409a Valuation Today!
While a 409a valuation may initially seem complicated, it is possible to get insight into how firms operate and how this impacts the actual market price and the equities provided to workers by familiarizing yourself with the underlying ideas. Moreover, experts have pointed out the heightened danger posed by the SVB issue’s disproportionate impact on startup companies. Entrepreneurs affected by the crisis can immediately use Eqvista’s low-cost valuation services. Feel free to contact us if you want to get a 409a valuation for your startup or have any questions regarding the subscription options or ongoing offers.