Category: 409a Valuation

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Get Two Free 409a Valuations and Experience Our Outstanding Valuation Process

Since 2018, Eqvista has strived to bring sophistication and technology to equity management. We wanted to provide access, affordability, and benefits to companies of all sizes. Fast forward to 2023, we are now trusted by over 14,000 businesses for cap table management, 409a valuation services, and IRS filings, and now emerging as leaders in the … Continued

409A Valuation at $89 a month for Startups Affected by SVB Failure

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 … Continued

Stripe 409A Valuation Cut: What it Means for the Tech Industry?

Stripe Inc. headquartered at San Francisco is a financial services and software as a service (SaaS) company founded by John and Patrick Collison in 2009. It provides payment software services to US Customers. According to a report, Stripe reduced the “internal value” of its shares by nearly 11% in the most recent revision, dropping it … Continued

When do South Korean companies need a 409A valuation?

Section 409A is a valuation that determines the fair market value of a private company’s common share. A South Korean company may need a 409A valuation if they are going public, establishing stock-based compensation, or are planning a merger, acquisition or other significant transaction. 409A valuation in South Korea is done by independent third-party valuation … Continued

Is a 409A Valuation Needed for Convertible Notes or SAFE Notes?

Following the Enron scandal of 2001, the government demanded corporations correctly value stock options granted to employees. Section 409A of the tax code requires startups to undertake regular audits to determine the value of the common shares they give out as options to their employees. A firm typically completes its first 409A valuation after raising … Continued

How to determine Preferred Stock Terms with 409A Valuations?

When it comes to dividends, the board of directors of a firm will decide whether or not to pay a dividend to common investors. If a corporation fails to pay a dividend, the common stockholder is bumped back in favor of a preferred stockholder, indicating that the latter has a higher priority. Preferred stock is … Continued

409A Valuations: Everything that Executives Should Know

A 409A valuation determines the fair market value (FMV) of a private company’s common stock as determined by a third-party appraiser. Startups require 409A valuations in order to provide employees tax-free stock options. The 409A valuation defines a company’s common stock’s base price, which is used to determine the price at which workers can exercise … Continued

How do high valuations affect your 409A valuation?

A 409a valuation is important because it establishes the fair market value of your company’s shares in writing. A 409a valuation, if done correctly, can help you comply with tax regulations and avoid unnecessary IRS audits that could lead to major problems down the road. Perhaps even more importantly, a 409a valuation provides your management … Continued

Creating ESOP for your Startup: How a 409A valuation can help?

The term “409A value” is derived from Section 409A of the United States Internal Revenue Code, which governs nonqualified deferred compensation schemes (e.g., stock options). The legislation compels private corporations to set an exercise price for their stock that may never be less than the FMV of the underlying stock on the date the stock … Continued

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