A 409A valuation looks like the same exercise at every stage — establish the fair market value of your common stock, set a defensible option strike price. But the work behind it changes materially as your company moves from a pre-revenue idea to a Series B business with real metrics. The valuation method changes, the inputs change, the cost changes, and the scrutiny changes. Understanding what a 409A looks like at your stage helps you budget for it, brief your appraiser well, and avoid over- or under-buying.
This guide walks the funding journey stage by stage. For the underlying mechanics, pair it with the 409A valuation process step by step; for the rules on timing and refreshes, see when do you need a 409A valuation.
Why the method changes by stage
An appraiser has three broad approaches to choose from, and the right one depends almost entirely on what evidence your company can offer.
- Market approach. Value the company relative to real market data — most powerfully, by a backsolve from a recent priced round. If investors paid a known price for preferred stock, an option-pricing model (OPM) can solve for the implied value of common stock. This is the workhorse method for venture-backed companies.
- Income approach. A discounted cash flow (DCF) — project future cash flows and discount them to present value. This needs a credible forecast, so it suits later-stage companies with real revenue and a defensible model.
- Asset approach. Value the company at the net value of its assets. Most relevant to very early, pre-revenue companies with little beyond cash and IP, or to asset-heavy businesses.
The single biggest factor is whether you have had a recent priced round. A priced round gives the appraiser a clean anchor; the absence of one forces more judgement. That is why a 409A feels different at seed than at Series B — not because the rules changed, but because the evidence did.
Pre-seed and incorporation
At incorporation, founders typically receive common stock at par value, before there is meaningful enterprise value, so a 409A is usually not needed yet. You need one once you start granting options to employees or advisors.
A pre-seed company — pre-revenue, funded by founder capital, an accelerator cheque, or early SAFEs — is the simplest possible 409A. With no priced round to anchor to, the appraiser leans on an asset approach and a sober view of the company's stage, sometimes cross-checked against the terms of any SAFEs raised. The cap table is short, there is little financial history, and the common stock value is low. This is the cheap end of the market — typically $1,000–$2,000 — and turnaround is fast.
Seed stage
Seed is where most founders get their first serious 409A, because seed is where most start hiring on equity and creating an option pool. Two situations:
Seed raised on SAFEs only. Common with priced rounds still ahead. With no preferred-stock price to backsolve from, the appraiser works from the SAFE terms (valuation caps are informative but not definitive — a cap is a ceiling, not a price), the stage, and an asset or early market view. There is more judgement here, which the report should document clearly.
Priced seed round. If your seed was a priced equity round, the appraiser has a real anchor and will typically run a backsolve through an OPM: the price investors paid for preferred implies, through the model, a value for common stock. Common stock sits well below the preferred price because preferred carries liquidation preferences and other rights that common does not — and that gap is precisely what gives employees a low, attractive strike price.
Expect roughly $1,500–$3,000 at seed. The cap table is still relatively clean, but SAFE conversions and a new option pool add some layers — keeping that cap table tidy keeps the valuation cheap and fast, a theme of our cap table management guide.
Series A
Series A is almost always a priced round, so the Series A 409A is a textbook backsolve. The appraiser takes the Series A preferred price and uses an option-pricing model to derive common stock FMV, accounting for the rights of every share class.
Two things change at Series A. First, the cap table is now genuinely layered — at least one and often two preferred classes, a SAFE generation that has converted, an option pool with real grants outstanding, possibly warrants. Modelling all of that correctly takes more work. Second, scrutiny rises: your Series A investors will expect a clean 409A, and your auditor (you likely have one now) will test it. Some companies also begin showing real revenue, which can bring an income approach into the mix as a cross-check.
Series A 409As typically run $2,000–$3,500. Note the timing rule: the Series A round is itself a material event, so even a recent 409A is stale the moment the round closes — you need a fresh one before granting post-Series-A options. BlackpeakCFO's productised valuation, at $1,995–$2,995, is built squarely for seed and Series A companies.
Series B and beyond
By Series B the company has substance: meaningful revenue, a track record, often multiple preferred classes with differing liquidation preferences and participation rights. The 409A becomes a more involved exercise:
- Multiple methods, reconciled. An appraiser may run a backsolve, an income approach (DCF), and a market-comparables analysis, then weight and reconcile them rather than rely on one.
- A more complex equity waterfall. More preferred classes, secondary transactions, repurchases and warrants all have to be modelled correctly through the OPM.
- Heavier documentation. As the company nears liquidity, the valuation must withstand audit-level scrutiny, and the report grows accordingly.
Series B 409As commonly run $3,500–$8,000+, and pre-IPO valuations climb into five figures. The cost reflects genuine complexity — not an upsell. The discipline that keeps it manageable is the same one that helped earlier: a clean, current, well-documented cap table.
Stage-by-stage summary table
| Stage | Primary method | Typical 2026 cost | Key complexity driver |
|---|---|---|---|
| Pre-seed | Asset approach | $1,000–$2,000 | Little to model; main question is stage judgement |
| Seed (SAFEs only) | Asset / early market view | $1,500–$2,500 | No priced anchor — more judgement |
| Seed (priced) | Backsolve / OPM | $2,000–$3,000 | SAFE conversions, new option pool |
| Series A | Backsolve / OPM | $2,000–$3,500 | Layered cap table, audit scrutiny |
| Series B+ | Multiple methods reconciled | $3,500–$8,000+ | Multiple preferred classes, secondaries, real forecasts |
Whatever your stage, the same rule governs timing: a 409A is valid for 12 months or until a material event — and a new priced round is the clearest material event there is. For the full timing rules, see when do you need a 409A valuation, and for a deeper cost breakdown, 409A valuation cost in 2026.
Get a 409A scoped for your stage
The right valuation is the one matched to where your company actually is — no thinner, no thicker. Tell me your stage, your last round, and how your cap table looks, and I will scope a 409A valuation that fits, with a flat fee and a realistic timeline.
Send your details and we will work out exactly what your stage needs.