409a
The indinero guide to 409A valuations
The four things founders ask us before their next option grant. Each one has a full page behind it.
Basics
What a 409A valuation actually is
An independent appraisal of the fair market value of your common stock, and why one has to exist before you grant options.
Read moreTiming
When you need a new one
The twelve month rule, and the material events that reset the clock early, a priced round being the obvious one.
Read moreProcess
How the valuation is carried out
The methods appraisers use, the documents you will be asked for, and a realistic timeline from kickoff to report.
Read moreRisk
Safe harbour, and life without it
How safe harbour shifts the burden of proof, and what a mispriced grant costs the people holding the options.
Read more409A resources
Reference pages for founders, finance leads and anyone preparing for a board approval.
Getting started
The 409A document checklist
Everything an appraiser will ask for, gathered before the kickoff call rather than chased afterwards.
Read moreTiming
409A and your funding round
How to sequence the valuation around a close so option grants are not sitting in a queue.
Read moreCosts
What a 409A valuation should cost
Typical ranges by stage, and the factors that push a quote up or pull it down.
Read moreEquity
Strike price, FMV and preferred price
Three numbers founders routinely conflate, and why the difference matters a great deal to employees.
Read more409A blog posts
Recent writing from the indinero blog for founders issuing equity.
Basics
409A valuations: a founder's plain-English guide
What it is, who needs one, and the questions worth asking a provider before you sign.
Read moreTiming
How often do you really need a 409A?
The twelve month default, and the events that force a refresh sooner than you planned.
Read moreRisk
What happens when a 409A is wrong
The penalties land on the employee rather than the company, which is the part founders tend to miss.
Read moreEmployees
Explaining option grants to your team
How to talk about strike price, vesting and dilution without overpromising.
Read moreMore on equity and valuations
Short pages you can send straight to a colleague or a board member.
Planning your next option grant?
We will tell you whether your current 409A still holds, and what a refresh would involve if it does not.