409A Valuation Explained: How It Protects Employees and Founders

Tue, 21 Oct 2025 12:50:54 +0000

Equity is the heart of every startup’s reward system. It motivates teams, attracts top talent, and strengthens commitment. But to make equity meaningful—and compliant—companies need an accurate benchmark for their common stock’s fair market value (FMV). This is where a 409A valuation plays a vital role.