She Raised A 4 Million Seed Round And Hired 400 People In 10 Months To Take On A Trillion Dollar Market
Christine de Wendel kickstarted her fintech startup with a massive 4M Seed round. Followed by an even larger Series A fundraising round, just four months later. On the Dealmakers Show, Christine de Wendel shared what it takes to successfully build a hyper-growth company. Including how to assemble a 400-person, all remote team, in seven countries, in just 10 months. Plus, the best job you can get before becoming an entrepreneur, choosing your startup idea, and how to find some work-family balance in the midst of it all.
As a startup owner, have you wondered how to get a certified 409A valuation? Business valuation is a common practice for every business. The valuation process is used to determine the worth of a company at any given time. However, when a company, especially a startup wants to issue stock options, they are required to get a different type of valuation known as a 409A valuation.
There is a lot of talk among startup owners about the complexity of a 409A valuation, however, getting this valuation opens up a whole new world of opportunities for the business. The major reason why startups go for this type of certified valuation is that it makes them eligible to issue equity-based compensation such as stock options to employees.
Employee stock options are commonly offered by startups, and therefore 409A valuation services are mostly availed by new businesses. Startups can get these assessments and then use the findings of the assessment to give their employees an incentive in the form of stock options.
With that said, a lot of startup owners who are getting their first 409A valuation aren’t sure how they can get this valuation done or how it works. In order to make things a little easier for startups, we have created this guide that will explain how 409A valuations work and how you can get it done, so keep reading.
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Here is the content that we will cover in this post. Let’s get started.
- 1. What is a 409A valuation?
- 2. How can you get a certified 409A valuation?
- 3. Do it yourself
- 4. Cons to be aware of.
- 5. Using software for a 409A valuation:
- 6. Cons to be aware of.
- 7. Hire a 409A valuation firm:
- 8. Cons to be aware of.
- 9. The Options Pricing Method
- 10. What are the different approaches used for 409A valuation?
- 11. Income approach
- 12. How much does a 409A valuation costs?
- 13. Conclusion
What is a 409A valuation?
Startups are private entities, which means their shares aren’t publicly traded in the market. So naturally, they can’t rely on the market to set their share price. That is where a 409A valuation comes in, and it can help startups in knowing the fair market value (FMV) of their shares when they want to issue stock options.
Continue reading the full guide
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