Kruze Consulting offers value based 409A Valuations:
Kruze charges $1,500 for a seed funded company 409A valuation, $2,000 for a Series A, $2,500 for a Series B and $3,000 for a Series C. As a frame of reference, you’ll find that other firms charge $4,000+ for a Seed Stage 409A, and $5,000+ for a Series A 409As. Other companies sign you up for a monthly recurring charge that eventually can equal thousands of dollars a year in costs.
Valuations Performed by Top 409A Firms
Our valuation partners have the highest certifications and designations and perform over 150 409A valuations per month. They are former Big 4 valuation partners and investment bankers from top firms. No work is done offshore. Unlike many valuation companies, they are responsive to a company’s unique needs and will work to make sure that the valuation report takes into account each startup’s particular situation.
What is included in the 409A report?
The process begins by thoroughly analyzing your financial history and your financial model, while also taking into consideration the intangible value of your startup in the current economic state. We apply valuation methodologies and assumptions that are specifically tailored to your unique situation. The valuation methodology follows AICPA and USAPAP guidelines closely making the reports audit ready. Upon conclusion of our findings, you will receive a 30+ page in depth 409A report that is readily shareable with your investors and Board.
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When does a Startup need a 409A valuation? A startup will need to start issuing 409A reports before it issues equity compensation (options/NQSO/ISO). A 409A Valuation through Kruze Consulting can be completed in 10 business days. The valuation is valid for 12 Months unless the startup raises another round of capital or has significant changes, at which point a new valuation is highly recommended.
Why Does a Startup Need a 409A Valuation?
Stock options are a great incentive tool for startups. When employees can participate in the upside of their startup, they work harder and smarter. Startups need 409A reporting because the IRS requires that options be priced at or above fair market value. Otherwise, issuing “cheap stock,” or options priced below fair market creates a taxable event for the employees receiving the options. A startup should get regular 409A valuations to protect itself and its employees from a taxable event.
If you’re interested in getting a 409A, please feel free to reach out to firstname.lastname@example.org
About us: Kruze Consulting provides all things Startup Accounting, Finance, Tax, & HR in one stop. We believe in leveraging software to save our clients time and money so that we can focus on higher value add activities. Our team comes from the Big 4 and venture capital backed startups.*
**Pricing subject to change based on each company’s unique business situation.