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Venture Deals

What is a 409A Valuation

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May 03, 2023
What is a 409A Valuation
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Neal Strickberger
Accepted Answer
May 03, 2023
Independent formal appraisal of the fair market value (FMV) of a private company’s common stock (the stock reserved mainly for founders and employees).
Named after Section 409A of the U.S. Internal Revenue Code, it's required by the IRS to ensure that stock options and other equity-based compensation are being issued at fair market value.
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