# 409.AI

> 409.AI helps startups and private companies prepare expert-reviewed valuation reports and equity documentation.

409.AI supports 409A, SMB, ASC 718, ASC 820, IFRS 2, QSBS attestation, gift & estate tax, ESOP, UK EMI and CSOP, purchase price allocation, impairment testing, and IP valuation workflows.

## Primary Pages

- [Valuation Services | 409A, SMB, ASC 718, ASC 820, EMI, CSOP & More](https://www.409.ai/): 409.AI helps startups and private companies prepare expert-reviewed valuation reports: 409A, SMB, ASC 718, ASC 820, IFRS 2, QSBS, gift & estate tax, ESOP, UK EMI and CSOP, purchase price allocation, impairment testing, and IP valuations.
- [Valuation Pricing | 409A, SMB, ASC 718, EMI & More](https://www.409.ai/pricing): Transparent pricing for expert-reviewed valuation reports: 409A and SMB from $899, ASC 718, IFRS 2, gift & estate, ESOP, ASC 820, UK EMI and CSOP, PPA, impairment, and IP valuations.
- [409A Valuation Guide: Safe Harbor, Cost, Process & Penalties](https://www.409.ai/409a-valuation-guide): The complete founder's guide to 409A valuations: what they are, IRS safe harbor, how FMV is calculated (OPM backsolve, DLOM), penalties, refresh triggers, timelines, and cost.
- [Sample 409A Valuation Report (Real, Redacted)](https://www.409.ai/sample-report): Preview a real, redacted 409A valuation report: FMV conclusion, OPM backsolve allocation, DLOM analysis, and appendices. Download the full sample PDF.
- [How Much Does a 409A Valuation Cost?](https://www.409.ai/409a-valuation-cost): 409A valuation cost explained: transparent tiers from $899 by amount raised, what drives price, provider-type cost comparison, and the hidden cost of cheap valuations.
- [When Do You Need a 409A Valuation? Timing & Refresh Triggers](https://www.409.ai/when-do-you-need-a-409a): When to get your first 409A valuation, how long it stays valid, and the material events that trigger a refresh — before option grants, after priced rounds, and more.
- [409A Valuation Reports for Startup Equity](https://www.409.ai/products/409a): 409.AI helps startups prepare expert-reviewed 409A valuation reports for common stock FMV and stock option strike price support.
- [QSBS Attestation Letter](https://www.409.ai/products/qsbs): 409.AI helps companies prepare investor-ready QSBS attestation letters for diligence, shareholder requests, and advisor review.
- [ASC 718 Stock-Based Compensation Reports](https://www.409.ai/products/asc-718): 409.AI helps startups prepare expert-reviewed ASC 718 valuation reports with grant-date fair value analysis to support stock-based compensation expense and audit requests.
- [ASC 820 Fair Value Measurement Reports](https://www.409.ai/products/asc-820): 409.AI helps funds and companies prepare expert-reviewed ASC 820 valuation reports with fair value analysis and Level 3 documentation support for US GAAP reporting.
- [IFRS 2 Share-Based Payment Valuation Reports](https://www.409.ai/products/ifrs-2): 409.AI helps companies reporting under IFRS prepare expert-reviewed IFRS 2 valuation reports with grant-date fair value analysis for share-based payment expense and audit support.
- [Gift & Estate Tax Valuation Reports](https://www.409.ai/products/gift-estate-tax): 409.AI helps shareholders prepare expert-reviewed private-company valuation reports for gift and estate tax filings, with fair market value analysis as of the transfer date.
- [SMB Business Valuation Reports](https://www.409.ai/products/smb-valuation): 409.AI helps small and medium-sized businesses prepare expert-reviewed fair market value valuation reports for loans, buy-sell agreements, ownership changes, and planning, from $899.
- [Purchase Price Allocation (ASC 805) Reports](https://www.409.ai/products/purchase-price-allocation): 409.AI helps acquirers prepare expert-reviewed purchase price allocation reports under ASC 805, with fair value analysis of acquired intangible assets and goodwill.
- [Goodwill & Intangible Impairment Testing](https://www.409.ai/products/impairment-testing): 409.AI helps companies prepare expert-reviewed impairment testing valuations under ASC 350 and ASC 360, with reporting unit fair value analysis built for auditor review.
- [ESOP Valuation Reports for Private Companies](https://www.409.ai/products/esop-valuation): 409.AI helps private companies prepare expert-reviewed annual ESOP valuation reports, with independent fair market value analysis supporting trustees and ERISA compliance.
- [IP & Intangible Asset Valuation Reports](https://www.409.ai/products/ip-valuation): 409.AI helps companies prepare expert-reviewed valuations of patents, trademarks, software, and other intangible assets for transactions, licensing, tax, and reporting.
- [EMI Valuation Reports for UK Share Options](https://www.409.ai/products/emi-valuation): 409.AI helps UK companies prepare expert-reviewed EMI valuation reports covering UMV and AMV, with VAL231 submission support for HMRC.
- [CSOP Valuation Reports for UK Share Options](https://www.409.ai/products/csop-valuation): 409.AI helps UK companies prepare expert-reviewed CSOP valuation reports to support option exercise prices, with VAL230 advance-agreement support for HMRC.
- [Which Valuation Do I Need? | Valuation Selector](https://www.409.ai/which-valuation): Answer a few quick questions to find the right valuation report, 409A, SMB, ASC 718, EMI, CSOP, PPA, and more. A guided selector from 409.AI.
- [Valuation Provider Comparison](https://www.409.ai/compare/409a-valuation-providers): Compare valuation provider models across 409A, ASC 718, ASC 820, PPA, impairment testing, gift and estate, ESOP, IP, QSBS, EMI, and CSOP needs.
- [409.AI vs Carta: Valuation Provider Comparison (2026)](https://www.409.ai/compare/409ai-vs-carta): Compare 409.AI and Carta across 409A valuations and beyond: pricing from $899 vs bundled plans, 24-hour drafts vs multi-day turnaround, and full valuation coverage from ASC 718 to purchase price allocations.
- [409.AI vs Pulley: Valuation Provider Comparison (2026)](https://www.409.ai/compare/409ai-vs-pulley): Compare 409.AI and Pulley across 409A valuations and beyond: standalone reports from $899 with 24-hour drafts vs cap table plans with bundled valuations, plus full coverage from ASC 718 to PPA.
- [409.AI vs Eqvista: Valuation Provider Comparison (2026)](https://www.409.ai/compare/409ai-vs-eqvista): Compare 409.AI and Eqvista across 409A valuations and beyond: 24-hour AI-assisted drafts from $899 vs bundled unlimited-refresh plans from $990, plus coverage from ASC 718 to UK share schemes.
- [409.AI vs Kruze Consulting: Valuation Provider Comparison (2026)](https://www.409.ai/compare/409ai-vs-kruze-consulting): Compare 409.AI and Kruze Consulting across 409A valuations and beyond: AI-assisted reports from $899 with 24-hour drafts vs CPA-firm valuations by stage, plus full valuation coverage from ASC 718 to PPA.
- [409.AI vs Eton Venture Services: Valuation Comparison (2026)](https://www.409.ai/compare/409ai-vs-eton-venture-services): Compare 409.AI and Eton Venture Services across 409A, ASC 718, ASC 820, and PPA valuations: AI-assisted reports from $899 in 24 hours vs high-touch independent appraisals for complex situations.
- [409.AI vs Aranca: Valuation Provider Comparison (2026)](https://www.409.ai/compare/409ai-vs-aranca): Compare 409.AI and Aranca across 409A, ASC 718, PPA, impairment, and IP valuations: AI-native reports from $899 in 24 hours vs a global analyst-driven advisory firm.
- [409.AI vs Scalar: Valuation Provider Comparison (2026)](https://www.409.ai/compare/409ai-vs-scalar): Compare 409.AI and Scalar across 409A, ASC 820, PPA, and gift & estate valuations: AI-native reports from $899 in 24 hours vs a high-touch independent firm with multi-tiered review.
- [Articles & Blog](https://www.409.ai/articles): Read 409.AI articles on 409A valuations, startup finance, equity compensation, and valuation report workflows.
- [Contact Us for Any Inquiries](https://www.409.ai/contact): Contact 409.AI for valuation report questions, support, business inquiries, or startup finance workflow help.

## Valuation And Report Types

- 409A valuation report: Expert-reviewed 409A valuation reports for common stock FMV and stock option strike price support.
- QSBS attestation letter: Investor-ready Section 1202 QSBS attestation letters for diligence, shareholder requests, and advisor review.
- ASC 718 valuation report: Expert-reviewed ASC 718 valuation reports with grant-date fair value analysis to support stock-based compensation expense and audit requests.
- ASC 820 valuation report: Expert-reviewed ASC 820 valuation reports with fair value analysis and Level 3 documentation support for US GAAP reporting.
- CSOP valuation report: Expert-reviewed CSOP valuation reports to support option exercise prices, with VAL230 advance-agreement support for HMRC.
- EMI valuation report: Expert-reviewed EMI valuation reports covering UMV and AMV, with VAL231 submission support for HMRC.
- SMB valuation report: Expert-reviewed fair market value valuation reports for small and medium-sized businesses, loans, buy-sell agreements, ownership changes, and planning.
- IFRS 2 valuation report: Expert-reviewed IFRS 2 valuation reports with grant-date fair value analysis for share-based payment expense and audit support.
- Gift & Estate Tax valuation report: Expert-reviewed private-company valuation reports for gift and estate tax filings, with fair market value analysis as of the transfer date.
- Purchase price allocation report: Expert-reviewed purchase price allocation reports under ASC 805, with fair value analysis of acquired intangible assets and goodwill.
- Goodwill & intangible impairment testing report: Expert-reviewed impairment testing valuations under ASC 350 and ASC 360, with reporting unit fair value analysis built for auditor review.
- ESOP valuation report: Expert-reviewed annual ESOP valuation reports, with independent fair market value analysis supporting trustees and ERISA compliance.
- IP & intangible asset valuation report: Expert-reviewed valuations of patents, trademarks, software, and other intangible assets for transactions, licensing, tax, and reporting.

## Key Facts

- Pricing: 409A and SMB valuations start at $899 USD (409A tiered by amount raised, SMB by annual revenue). QSBS attestation is $999. ASC 718 and IFRS 2 valuations start at $1,499. Gift & estate tax valuations start at $1,999. ESOP, EMI, and CSOP valuations start at $3,499. ASC 820 / portfolio valuations are $4,999. Purchase price allocation, impairment testing, and IP valuations are $9,999.
- Turnaround: draft 409A reports in 24 hours. Final reports are delivered in 7 business days standard; express delivery (1 or 3 business days depending on report type) is available for a $500 add-on.
- Add-ons: QSBS attestation letter (+$500) and 409A valuation (+$500) can be bundled with eligible reports.
- Every report is reviewed by a valuation expert before it is final. Audit defence is available at $175/hour.
- Methodology: enterprise value is allocated across share classes using an option pricing model (OPM), typically calibrated to the most recent financing via a backsolve. A discount for lack of marketability (DLOM) is applied using recognized models such as Finnerty and Chaffe. 409A reports are prepared for IRS safe-harbor reliance.
- Jurisdictions: United States (409A, SMB, QSBS, gift & estate tax, ESOP), United Kingdom via HMRC (EMI, CSOP), and international (IFRS 2).
- Pricing and packaging may change; the pricing page at https://www.409.ai/pricing is the source of truth.

## Common Questions

- What is a 409A valuation? An independent appraisal of a private company's common stock fair market value, used to set tax-compliant stock option strike prices under IRC Section 409A.
- What is Section 409A? The section of the US Internal Revenue Code governing nonqualified deferred compensation, including stock options priced at fair market value.
- How much does a 409A valuation cost? 409.AI 409A reports start at $899 USD, tiered by the amount of capital a company has raised.
- How long does a 409A valuation take? 409.AI delivers a draft in about 24 hours and the final report in 7 business days standard, with 1 or 3 business day express available.
- How long is a 409A valuation good for? Generally up to 12 months, or until a material event (such as a new financing round) occurs, whichever comes first.
- How often do you need a 409A valuation? At least every 12 months while issuing options, and again after any material event.
- Are 409A valuations public? No. They are private reports prepared for the company and its option-pricing decisions; they are not filed publicly.
- Do I need a 409A valuation? Typically yes if you are a private company granting stock options or issuing common stock to employees and want IRS safe-harbor protection.
- How is a 409A valuation calculated? By estimating enterprise value, allocating it across share classes with an option pricing model backsolve, and applying a discount for lack of marketability (DLOM).
- What is QSBS? Qualified Small Business Stock under IRC Section 1202, which can allow eligible shareholders to exclude a portion of capital gains on a qualifying sale.
- Does a QSBS attestation guarantee eligibility? No. A 409.AI QSBS attestation letter organizes company facts to support diligence and advisor review; it does not create or guarantee QSBS eligibility.
- What is the difference between ASC 718 and a 409A valuation? A 409A sets the strike price for granting options; ASC 718 uses grant-date fair value to record stock-based compensation expense in financial statements. Companies often need both.
- What is ASC 820? The US GAAP fair value measurement standard, commonly used by funds for portfolio (Level 3) valuations.
- Who needs an ESOP valuation? Private companies with an employee stock ownership plan need an independent annual valuation to support the trustee and ERISA compliance.

## Articles

- [How SAFEs Affect Your 409A Valuation (and Your Team's Strike Price)](https://www.409.ai/articles/how-safes-affect-your-409a-valuation): Every SAFE you sign is a call option a 409A must price. Here's how pre- and post-money SAFEs lower your common stock FMV and reset your team's strike price.
- [ISO vs. NSO Stock Options: How Each Is Taxed and Why 2026 Raises the Stakes](https://www.409.ai/articles/iso-vs-nso-how-stock-options-are-taxed): ISOs and NSOs are taxed very differently. How each works, the ISO AMT trap, and why 2026's OBBBA changes make exercising ISOs riskier for high earners.
- [The 83(b) Election: A 30-Day Filing That Decides How Your Startup Equity Is Taxed](https://www.409.ai/articles/the-83b-election-explained-for-founders): The 83(b) election is a 30-day filing that can turn startup equity gains from ordinary income into capital gains. How it works, who qualifies, how to file.
- [QSBS Just Got Bigger: What the One Big Beautiful Bill Act Changed About Section 1202](https://www.409.ai/articles/qsbs-one-big-beautiful-bill-act-section-1202-changes): The One Big Beautiful Bill Act reshaped QSBS: a bigger $15M exclusion, a $75M size ceiling, and a new 3-year tiered holding period. What founders should know.
- [Understanding 409A Nonqualified Deferred Compensation Plans: Benefits and Key Considerations](https://www.409.ai/articles/409a-nonqualified-deferred-compensation-plans): Section 409A governs far more than stock option pricing. It also regulates an entire category of deferred compensation plans used to reward executives and key employees. Here is how these plans work, what benefits they offer, and what compliance requirements companies must meet to avoid severe penalties.
- [409A Valuations and Tax Implications: What Companies and Employees Need to Know](https://www.409.ai/articles/409a-valuation-tax-implications): The 409A valuation sits at the intersection of equity compensation and tax law. Understanding how it affects the timing and amount of taxes owed, for both companies and employees, is essential for making informed decisions about stock options and deferred compensation.
- [Dealing with Incorrect 409A Valuations: How to Identify and Fix Them](https://www.409.ai/articles/dealing-with-incorrect-409a-valuations): A flawed 409A valuation is more than a paperwork problem. If options were granted based on an incorrect FMV, the tax consequences fall on your employees. Here is how to recognize when a valuation has gone wrong, what your remediation options are, and how to prevent it from happening again.
- [Don't Miss the 409A Valuation Deadline: What Happens and How to Fix It](https://www.409.ai/articles/409a-valuation-deadline-correction-procedures): Missing a 409A valuation deadline is more common than founders realize, and the consequences fall directly on employees. Here is what happens when you let a valuation lapse, what your options are to remediate the situation, and how to make sure it does not happen again.
- [409A vs. Fair Market Value: Why They Are Not the Same Thing](https://www.409.ai/articles/409a-valuation-vs-fair-market-value): A 409A valuation is a type of fair market value assessment, but not all FMV valuations are 409A valuations. The distinction matters more than most founders realize, especially when facing an M&A deal, estate planning, or financial reporting requirements.
- [What Is the Market Approach in a 409A Valuation?](https://www.409.ai/articles/market-approach-409a-valuation): The market approach values a company by comparing it to similar businesses and real transactions. It is one of the most commonly used methods in 409A valuations, especially for startups that have recently raised a funding round. Here is how it works and when it applies.
- [What Is the Asset-Based Approach in a 409A Valuation?](https://www.409.ai/articles/asset-based-approach-409a-valuation): The asset-based approach is one of three core methodologies used in 409A valuations. It is the go-to method for pre-revenue startups and early-stage companies with no funding history. Here is how it works, when it applies, and how it fits into the broader valuation process.
- [What Is the Income Approach in a 409A Valuation?](https://www.409.ai/articles/income-approach-409a-valuation): The income approach is the most forward-looking of the three 409A valuation methodologies. It values a company based on its ability to generate future cash flows, but it only works when the underlying data can support it. Here is how it works and when appraisers actually use it.
- [Decoding a 409A Valuation Report: A Section-by-Section Walkthrough](https://www.409.ai/articles/decoding-a-409a-valuation-report-walkthrough): A 409A valuation report can look intimidating at first glance, running anywhere from 40 to 100 pages depending on company complexity. This guide walks through each section so you know exactly what to look for and how to verify the report is accurate and defensible.
- [Inside the 409A Valuation Process: A Step-by-Step Overview](https://www.409.ai/articles/inside-the-409a-valuation-process): What actually happens between engaging a 409A appraiser and receiving your final report? This guide walks through each stage of the process, what you need to prepare, how long it takes, and where things commonly go wrong.
- [The Advantages of 409A Valuation: How It Benefits Businesses](https://www.409.ai/articles/advantages-of-409a-valuation-how-it-benefits-businesses): A 409A valuation is more than a compliance requirement. From sharpening financial decisions to attracting top talent and building investor confidence, here is how a well-executed valuation creates real business value.
- [409A Valuation for Venture Capital Funding: What Founders Need to Know](https://www.409.ai/articles/409a-valuation-for-venture-capital-funding): Raising venture capital changes your 409A obligations immediately. Every new round is a material event, and VCs will scrutinize your valuation history during due diligence. Here is what founders need to understand about the relationship between 409A valuations and VC fundraising.
- [Understanding the Necessity of 409A Valuations for Pre-IPO Stock Options](https://www.409.ai/articles/409a-valuations-for-pre-ipo-stock-options): As a company approaches an IPO, the stakes around 409A valuations rise sharply. The SEC looks back at your entire option grant history, and any gaps or inconsistencies can delay your listing or trigger costly disclosures. Here is what every pre-IPO company needs to understand.
- [409A Valuation for Startups: What You Must Know](https://www.409.ai/articles/409a-valuation-for-startups-what-you-must-know): Getting a 409A valuation right is harder for startups than for established companies. Limited data, rapid growth, and frequent funding rounds all create unique challenges. Here is what every founder needs to understand before issuing their first stock options.
- [Are 409A Valuations Applicable to Private or Public Companies?](https://www.409.ai/articles/are-409a-valuations-applicable-to-private-or-public-companies): Most people associate 409A valuations with startups and private companies, but the rules apply more broadly than that. This article breaks down how 409A valuations work for both private and public companies, and what the key differences are for each.
- [Understanding 409A Valuation for Employees: What Your Stock Options Are Really Worth](https://www.409.ai/articles/understanding-409a-valuation-for-employees): If you have stock options as part of your compensation, the 409A valuation directly affects what you will pay to exercise them and how much tax you will owe. Here is what every employee should understand about how this process works and what it means for your financial future.
- [409A Valuation Frequency: How Often Should You Get One?](https://www.409.ai/articles/409a-valuation-frequency-how-often-should-you-get-one): Annual, quarterly, or after every funding round? The answer depends on your company's stage and what has changed since your last valuation. This guide breaks down the IRS requirements and the key events that trigger an update.
- [Explained: Why Is Your 409A Valuation Lower Than Your Post-Money Valuation?](https://www.409.ai/articles/why-is-your-409a-valuation-lower-than-post-money-valuation): If your 409A valuation came in much lower than your post-money valuation, you are not alone. This article explains why the two numbers are supposed to be different, what drives the gap, and why a lower 409A is actually good news for your employees.
- [The Need for 409A Valuations & Requirements: Why Employees Should Care](https://www.409.ai/articles/the-need-for-409a-valuations): Exploring the reasons behind requiring 409A valuations, this article emphasizes why businesses should prioritize complying with the valuation regulations. Also covers deferred compensation.
- [Behind the Numbers: How 409A Valuation Calculator Works](https://www.409.ai/articles/how-are-409a-valuations-calculated): This article delves into the methodology behind 409A valuations, discussing the factors, data, and financial models used to determine the fair market value of a company's stock.
- [What is a 409A Valuation? A Comprehensive Guide](https://www.409.ai/articles/what-is-a-409a-valuation-a-comprehensive-guide): Confused about 409A valuations? This comprehensive guide breaks down what they are, why they matter, and how the process works, in plain language for founders, executives, and employees navigating equity compensation for the first time.

## Important Guardrails

409.AI site content is informational and product marketing, not tax, legal, accounting, or investment advice. QSBS attestation letters support documentation and advisor conversations but do not create or guarantee QSBS eligibility.