Technical deep-dives into 409A valuation methodologies including OPM, PWERM, and other advanced valuation techniques.
11 articles in this topic
The 409A valuation methods for pre-revenue startups: cost approach, OPM backsolve, and PWERM. When each fits, why DCF rarely works, and how appraisers reach common stock FMV.
Read moreCommon stock vs preferred stock in a 409A: why common is worth less, how much lower it lands by stage, the rights that drive the gap, and how the OPM allocates value.
Read moreDo SAFE notes affect your 409A valuation? Yes — they sit in the cap table, dilute common stock, and can change the OPM backsolve. Here's exactly how to disclose and model them.
Read moreThe three 409A valuation approaches — income, market, and cost — explained. When each one fits your stage, how appraisers weight them, and what AICPA Practice Aid says.
Read moreHow appraisers select volatility inputs for 409A Black-Scholes models. Peer selection, historical vs implied volatility, and typical ranges by stage and industry.
Read moreThe Finnerty DLOM model explained for 409A valuations. Formula breakdown, required inputs, a worked example, and typical DLOM ranges by funding stage.
Read moreA step-by-step 409A valuation example using a representative Series A SaaS startup -- from cap table inputs to final fair market value per common share.
Read moreHow does your option pool size affect your 409A valuation? Learn the mechanics of pool sizing, the option pool shuffle, and FMV impact.
Read moreYour cap table is the primary driver of your 409A fair market value. Learn how liquidation preferences, option pools, and convertible instruments shape your common stock FMV.
Read moreUnderstand the three 409A valuation methodology approaches — market, income, and asset. Learn which method applies to your startup and why appraisers weight them differently.
Read moreHow the Option Pricing Model determines your startup's 409A value. Includes OPM formula, Black-Scholes inputs, and when to use OPM vs backsolve. Free examples.
Read moreEverything founders and CFOs need to know about 409A valuations: what they are, why they matter, and how to stay compliant as your company scales.
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