409A Valuations, Tied to Your Real Cap Table
A 409A sets the fair market value your option strike prices depend on. Fintra manages valuations against your live cap table and keeps the trail that makes them defensible.
What 409A valuation covers
Fintra records and manages your 409A valuations, links the resulting fair market value to option strike prices, and keeps the supporting trail. Because valuations sit on the same cap table that holds your grants and rounds, the FMV that governs a grant’s strike price is always the current, correct one.
- Valuations recorded against the live cap table
- Fair market value driving option strike prices
- Validity tracking so you know when a refresh is due
- Audit trail supporting each valuation
Why 409A matters
When to refresh
| Trigger | Why |
|---|---|
| 12 months elapsed | Safe-harbor validity window |
| New priced round | Material value change |
| Major milestone | Value materially changed |
| Secondary transaction | New market signal |
Connected to grants and expense
- FMV drives strike prices on new grants
- Feeds ASC 718 expense measurement
- Sits on the same cap table as rounds and grants
Frequently asked questions
What is a 409A valuation?
It’s an independent appraisal of the fair market value of a private company’s common stock, used to set option strike prices. A defensible 409A gives safe-harbor protection so employees aren’t hit with Section 409A penalties for options priced below fair value.
How often do I need a new 409A?
Generally at least every 12 months, and sooner after a material event like a new priced round or a major milestone that changes value. Fintra tracks validity so you know when a refresh is due rather than discovering a stale valuation at grant time.
Does Fintra perform the valuation itself?
Fintra manages the valuation record, links the resulting fair market value to strike prices, and keeps the supporting trail on the same cap table as your grants. Many companies pair that with an independent appraisal; Fintra keeps it organized, current, and connected to grants and ASC 718.
How does the 409A connect to option grants?
The fair market value from the current 409A drives the strike price on new option grants, and the same value feeds ASC 718 expense measurement - so valuation, grants, and expense all reference one number.
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Keep your 409A current and defensible
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