What information affects your 409A pricing before work begins, and why does it matter? Accurate upfront pricing depends on understanding your equity structure, financial maturity, and timing needs. When these details are clear early, you avoid scope changes and last-minute adjustments.
Below is a breakdown of the information typically required to price a 409A engagement correctly and how each item affects effort and risk.
Most recent cap table
Your cap table shows how ownership is structured across founders, employees, and investors.
It helps determine:
- The number and types of equity instruments in play
- How value needs to be allocated across share classes
- Whether additional modeling is required
A clean, up-to-date cap table keeps pricing predictable.
Last preferred financing round details
Details from your most recent priced round provide critical valuation signals.
These include:
- Close date of the round
- Share price
- Key economic and control terms
Recent rounds with complex terms require more analysis and review, which affects pricing. Clear documentation here reduces follow-up questions.
Company stage and headcount
High-level context helps set the baseline for the engagement.
Stage indicates:
- Operating history
- Investor expectations
- Likely audit scrutiny
Headcount provides insight into:
- Option grant volume
- Equity administration needs
Together, these factors help estimate valuation scope.
SAFEs, convertibles, and complex equity terms
Alternative financing instruments add layers to the valuation.
Common examples:
- SAFEs with valuation caps or discounts
- Convertible notes with varying conversion mechanics
- Custom investor rights
Each instrument introduces additional modeling and documentation, which directly impacts pricing.
Revenue and financial projections
Revenue status and forecast quality influence both risk and effort.
If your company:
- Has recurring revenue
- Maintains forward-looking projections
- Uses forecasts in board reporting
The valuation team can align assumptions more efficiently. Limited or inconsistent forecasts often require extra analysis.
Target timeline for completion
Timing affects resource planning.
Standard timelines allow for a smooth review process. Compressed deadlines require priority handling and tighter coordination, which may affect pricing.
Why this information matters
Sharing this information upfront allows indinero to scope the engagement accurately, align resources, and set clear expectations. The result is fewer surprises, faster turnaround, and pricing that reflects your actual situation rather than estimates.
If you are preparing for a 409A valuation, gathering these details early is one of the simplest ways to keep the process on track.
