409A Valuation Cost - Complete Pricing Guide for Startups (2025)

Let's talk money. You know you need a 409A valuation, but what's this going to cost you? And more importantly, what are you actually paying for?

409A Valuation Pricing - The Basic Range

For most startups, expect to pay somewhere between $2,000 and $11,000 for a 409A valuation. I know that's a huge range, but the actual 409A valuation cost depends on several factors we'll break down.

Here's a rough guide for 409A valuation pricing by stage:

Pre-seed / Early-stage (simple cap table, pre-revenue or minimal revenue): $2,000 - $4,000

Seed / Series A (one or two funding rounds, growing revenue): $3,000 - $6,000

Series B+ (multiple funding rounds, complex cap table, significant revenue): $6,000 - $11,000+

These are ballpark figures for 409A valuation costs. You might find cheaper options or pay more depending on your specific situation and chosen provider.

What Drives 409A Valuation Costs Up?

Cap Table Complexity

The more complicated your ownership structure, the more work it takes to value. Simple factors that increase 409A valuation pricing:

• Multiple classes of preferred stock with different terms
• Convertible notes or SAFEs that haven't converted yet
• Warrants or secondary share classes
• Multiple option pools or unusual vesting structures
• Previous M&A activity or complex restructuring

A clean cap table with just common stock and one series of preferred? Quick and straightforward. A cap table with three series of preferred, participating preferences, various warrants, and a couple of SAFEs? That'll cost you.

Revenue and Business Model

Pre-revenue companies are usually simpler to value because there are fewer data points to analyze. Once you have revenue, especially if it's growing quickly or you have complex revenue recognition, the analysis gets more involved.

Multiple revenue streams, international operations, or unusual business models (like marketplaces or complex SaaS structures) add time and complexity.

Time Pressure

Need it done in three days instead of two weeks? Expect to pay a rush fee, typically $500-$1,500 depending on the provider and how fast you need it.

This is actually a place where you have some control - plan ahead and you can save money by avoiding rush charges.

Provider Type and 409A Valuation Fees

Pure-play 409A valuation firms: Usually the most competitive on price, especially for straightforward valuations. They've streamlined the process and do high volume.

Equity management platforms: Often bundle 409A valuations with their software subscription. Might look cheaper upfront but check the total cost including platform fees.

Big Four / established accounting firms: Premium 409A valuation pricing ($5K-$15K+) but bring extra credibility and expertise for complex situations.

Hidden 409A Valuation Costs to Watch For

Annual 409A Valuation Refreshes

Your first 409A valuation isn't your last. You need to refresh it:

• Every 12 months minimum
• After any "material event" (fundraising, major pivots, etc.)

Some providers charge the same rate for 409A valuation refreshes, others offer a discount (maybe 20-30% off) since they already know your company. Ask about refresh pricing upfront.

Material Event Refreshes

Raised a new round six months after your last 409A? You need a new one. The definition of "material event" can be broad:

• New funding round (even a small bridge)
• Significant change in financial performance
• Major product launches or pivots
• Large partnerships or customer wins
• Approaching an exit

If you're active in fundraising or growing fast, you might need 2-3 valuations per year. Budget accordingly.

Support and Revisions

Most providers include one round of reasonable revisions if you catch an error or need to update information. But extensive back-and-forth or major changes might trigger additional fees.

Also ask: if you get acquired or audited, will they answer questions from auditors or acquirers? Some providers charge extra for this support, others include it.

Platform Lock-in

This isn't a direct cost, but worth considering: if your 409A provider is also your cap table manager, switching later means migrating your entire equity management setup. That switching cost can be significant in time and hassle.

How to Save Money (Without Cutting Corners)

Plan Ahead

Avoid rush fees by planning your valuation timing around known events. Need to grant options to a new executive? Get the 409A refresh started a few weeks before their start date, not three days before.

Bundle When It Makes Sense

If you need equity management software anyway, bundled pricing might save you money overall. Just make sure you actually like the platform - don't choose bad software just for a cheaper 409A.

Time Your Refresh Strategically

If you're fundraising, wait until after the round closes to do your 409A refresh. Otherwise you'll need another one right after the funding anyway.

Similarly, if you're approaching the 12-month mark but have a potential material event coming in the next month or two, you might wait and combine them.

Keep Your Cap Table Clean

The cleaner your cap table and the more organized your financial information, the less time it takes to complete the valuation. Less time = lower cost.

Good records and a well-maintained cap table can save you money on every 409A over the life of your company.

Shop Around (But Don't Overoptimize)

Get quotes from 2-3 providers to understand the market rate. But don't spend three weeks shopping for the absolute cheapest option - your time is valuable, and any reputable provider in the right price range will do the job well.

When It's Worth Paying More

Sometimes the cheaper option isn't the better deal:

Speed matters: If you're about to lose a key hire because you can't grant options, paying an extra $1,000 for rush service is worth it.

Complex situation: If you have an unusual business model or complicated cap table, paying more for a provider with specific expertise in your situation can prevent problems later.

Upcoming exit or audit: If you're in active M&A discussions or expect an audit soon, the credibility of a big-name firm might be worth the premium pricing.

Responsive support: Good customer service has value. If you've had issues with unresponsive providers before, paying more for better support might save you headaches.

The Total Cost Picture

Let's be realistic about total cost over time. Here's a typical scenario:

Year 1: Initial 409A at seed stage: $3,000

Year 2: Annual refresh: $2,500 + Series A material event refresh: $4,000 = $6,500

Year 3: Annual refresh: $3,000

Three-year total: $12,500

That's on top of your equity management software costs (usually $200-$1,000+/month depending on the platform and stage).

Not cheap, but it's the cost of doing business properly and protecting your company and employees from tax problems.

Is It Worth It?

Here's the thing: the question isn't whether a 409A is "worth" $2,000-$11,000. The question is whether it's worth it compared to the alternative.

The alternative - no 409A or an improper valuation - can expose your entire company and all your employees to IRS penalties. We're talking about immediate taxation of all deferred compensation plus 20% penalties. For a company with 20 employees holding options, that could easily be hundreds of thousands in unexpected tax liability.

Compared to that risk, even $10,000 for a proper 409A is cheap insurance.

The Bottom Line on 409A Valuation Costs

Budget $3,000-$6,000 per 409A valuation for most startups, with the understanding you'll need one initially and roughly once a year thereafter (plus material event refreshes).

Look for a reputable 409A valuation provider who's done valuations for companies like yours, can deliver in a reasonable timeframe, and will support you if questions come up later.

Don't shop purely on price - the cheapest 409A valuation option might lack the quality or responsiveness you need. But also don't overpay just because a provider has a fancy name.

Get quotes, check references from other founders, and choose a 409A valuation provider who makes sense for your stage and situation. Then build the cost into your annual budget as a recurring expense, not a surprise bill.