409: Professional 409A Valuations in Minutes, Not Months
Every startup issuing stock options needs a 409A valuation. Every 409A valuation takes weeks to months and costs $5,000 to $15,000 from a traditional valuation firm. And every founder knows the report will arrive two weeks after the board meeting where they needed it.
409 by DoAide changes the math entirely.
What a 409A Valuation Actually Requires
Section 409A of the Internal Revenue Code requires companies to value their common stock at fair market value when granting stock options. Get it wrong, and your employees face a 20% penalty tax plus interest on their options — the exact opposite of the incentive you were trying to create.
A "safe harbor" valuation — one the IRS is presumed to accept — requires either:
- An independent appraisal by a qualified individual
- A formulaic valuation for illiquid startups less than 10 years old
- A binding arm's-length transaction
Most startups go with the independent appraisal. And most independent appraisers use a combination of income approach, market approach, and option pricing models (OPM/PWERM) to arrive at a fair market value.
What 409 Automates
Monte Carlo Simulations
Instead of a single-point estimate, 409 runs thousands of simulated future outcomes across your cap table. Different exit scenarios, different timelines, different market conditions. The result: a distribution of values, not a guess.
DLOM Calculations
The Discount for Lack of Marketability is where most manual valuations lose time. 409 implements the Finnerty put-option model and the Chaffe protective-put model, calibrated to your company's specific liquidity horizon and transfer restrictions.
Cap Table Integration
Upload your cap table once. 409 maps every share class, every preference stack, every anti-dilution provision. When your next round changes the waterfall, the valuation updates in real time — you don't wait for an analyst to rebuild the spreadsheet.
Defensible Reports
The output is a complete, professionally formatted valuation report. Executive summary, methodology, assumptions, sensitivity analysis, and conclusion — structured the way the IRS and Big Four auditors expect to see it.
The Numbers
| Traditional Firm | 409 by DoAide | |
|---|---|---|
| Turnaround | 2-6 weeks | Minutes |
| Cost | $5,000-$15,000 | Fraction of the cost |
| Updates per year | 1-2 (grudgingly) | As many as you need |
| Cap table changes | Restart from scratch | Real-time recalculation |
Who This Is For
- Pre-seed to Series B startups granting options and needing safe-harbor coverage
- CFOs and controllers tired of waiting on external firms every time the board meets
- Valuation analysts who want the computation done right and the formatting done for them
How It Works
- Enter your company details and cap table
- 409 runs the full valuation methodology — income approach, market approach, OPM allocation
- Review the draft report, adjust assumptions if needed
- Download a professional, audit-ready PDF
No back-and-forth emails with an analyst. No "we'll get to your update next week." No $10,000 invoice for what is fundamentally a computation.
Try It
Visit 409.doaide.com to run your first valuation.
Part of the DoAide business suite — AI-powered tools built for startups and SMBs.
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