Hi, I’m Chris Walton, author of this guide and CEO of Eton Venture Services.
I’ve spent much of my career working as a corporate transactional lawyer at Gunderson Dettmer, becoming an expert in tax law & venture financing. Since starting Eton, I’ve completed thousands of business valuations for companies of all sizes.
Read my full bio here.
409A valuations typically cost anywhere from $2500 to $4000.
Where you fall in that range will depend on the complexity of your startup’s funding stage and the turnaround time required.
At Eton Venture Services, we offer two 409A valuation packages:
Our packages are priced fairly for the depth of analysis, audit readiness, and personal guidance included.
For an exact quote tailored to your company’s needs, contact us directly. We’ll respond quickly and walk you through what to expect.
Please also note that an expedited 409A valuation will incur a higher fee. Our 409A valuation services typically take 10 days, but if you need your valuation sooner (or in as little as one day) , expect to pay a small premium.
We consider two things when pricing your 409a valuation:
Because no two 409a valuation needs will be the same, we always provide a custom quote and are happy to jump on a call to explain the cost and timeline of services.
“Complexity” mainly reflects the makeup of your cap table – how many rounds you’ve raised and the types of shares or instruments involved.
If you’re a new startup without outside investment, then your complexity level is low. But if you’re a Series B company or onward, you’ll have multiple levels of investment to analyze.
That’s why we offer two tailored 409A packages, as previously mentioned:
“Turnaround time” is as simple as it sounds. It’s the speed at which you need the service completed.
Our standard 409A valuation service takes 10 days, but we deliver your valuation in as fast as one day at a small premium.
Other providers may consider different factors, including:
Age, size, and industry don’t impact how we price your 409a valuation at Eton. Instead, we focus on share structure and company stage to define complexity.
Both of our early-stage and late-stage 409A valuation packages cover everything you need for a defensible, audit-ready valuation.
Our fee includes:
As part of your 409A valuation, we’ll follow a 6-step process:
Remember, you’re also paying for an efficient timeline. The entire process can be done between 1 and 10 days from the delivery of your documents.
Some cap table platforms include free 409A valuations as part of their broader service packages. While these can seem appealing, especially for early-stage startups, it’s worth understanding what’s included and where potential gaps may arise.
There are three main limitations to be aware of:
A safe harbor is established when an independent third party with rigorous processes and audit-defensible skills conducts a 409A valuation. Automated cap table management companies often can’t provide a safe harbor 409A valuation due to the complexities and specific requirements involved in these valuations—it takes real human judgment and understanding of legal nuance.
2. Investors and auditors often prefer valuations performed by independent, specialized providers. They see these reports as more credible because they’re free of potential conflicts and follow recognized valuation standards.
3. Automated models can overstate common stock value by 30–50%. While they can speed up the process, they often overlook company-specific risks or nuances that affect value. The result can be inflated common stock valuations, which make employee options less attractive and undermine their intended incentive.
We understand that free 409As can seem convenient, especially for early-stage founders, but they often come with trade-offs in quality, independence, and defensibility.
At Eton, we eliminate those risks by providing independent, audit-ready valuations that meet USPAP standards, qualify for IRS safe harbor, and give investors and employees complete confidence in the results.
Selecting the right 409A valuation provider is a balancing act between cost, quality, and compliance.
Here’s what I’d avoid and what I’d look for in a provider:
Avoid:
Look for:
By following these guidelines, you’ll find a provider that offers not just a competitive price, but also the quality and safe harbor status essential for your peace of mind and compliance.
Eton’s valuation team all come from Big 4 accounting firms. But what does that mean for you?
It means you get the same technical rigor and audit-defensible quality you’d receive from Deloitte, Ernst & Young (EY), KPMG, or PwC, delivered faster and at a fraction of the cost.
409A valuations from those firms often range from $10,000 to $25,000 and take up to two or three months.
As a boutique valuation firm, we deliver Big 4-level quality with the added benefits of affordability, personal guidance, and faster turnaround, often completing reports in as little as one to ten days.
We offer two 409A valuation packages tailored to different startup stages:
To be completely transparent, you’ll find providers that are even more affordable than Eton. But many of those rely on automated valuation models to keep prices down.
The issue here is that automated 409a valuation may not be (and is probably not) USPAP compliant. They don’t provide a safe harbor, a defensible, valid valuation to the IRS.
📕 USPAP = Uniform Standards of Professional Appraisal Practice.
Without safe-harbor protection, the IRS can challenge your valuation, and you’d have to prove it reflects fair market value.
With Eton’s 409A valuations, every report meets safe-harbor standards, so it’s presumed reasonable under IRS rules. In an audit, the burden shifts to the IRS to prove it’s “grossly unreasonable,” not to you.
So even if audited, your focus can stay where it needs to be: growing your business. Plus, we’ve never lost an audit, so you can be assured that your valuation will stand up to any level of scrutiny.
In need of 409A valuation services that are fairly priced, high quality, and USPAP compliant?
Talk to our team here to find out exactly how much a 409A valuation would cost you at your stage of business.
Your 409A valuation is like buying an insurance policy. It’s not just about cost—it’s about the value of compliance, the peace of mind it brings, and the avoidance of hefty penalties from the IRS.
It’s always worth paying for a dedicated specialist firm over a cheap, and potentially risky 409A provider such as from a cap table Platform. But at the same time, you don’t need to go to a major firm such as Deloitte and fork out more than $10k+.
Ask yourself:
If you can answer yes to those then the 409a valuation is worth the money.
At Eton, we ensure that our valuations are a smart investment, providing you with a robust defense in the unlikely event of an audit. And we’re competitively priced considering it’s the equivalent if not superior to the likes of Deloitte, Ernst & Young (EY), KPMG, and PwC.
A 409A valuator looks at the nitty-gritty of your company’s financials, market conditions, and complex cap tables to determine the fair market value of your company’s stock.
With every 409A valuation, they will assess which valuation method is most applicable and will get you a true, favorable fair market valuation.
It’s a meticulous process that ensures your stock option pricing aligns with IRS regulations and protects both you and your employees.
Technically, you could, but it’s akin to representing yourself in court—possible, but fraught with risk.
The IRS requires that the valuation be conducted by a qualified, independent appraiser, especially as your company grows.
Doing it yourself could lead to an IRS challenge, and without the proper expertise, you might find yourself in hot water.
At Eton, we’ve streamlined the process to be as efficient as possible. Our standard turnaround is 10 days, but we can do it in as few as one.
Compare that to Deloitte, Ernst & Young (EY), KPMG, and PwC where 409a valuation services take months.
We’ve explained the nuances behind timelines in our article here: “how long does a 409a valuation take?“.
You can get a 409A valuation from specialized valuation firms.
At Eton Venture Services, we provide independent, audit-defensible 409A valuations with Big-4-level rigor, without the Big-4 price tag. Every report meets USPAP standards and IRS safe-harbor requirements, ensuring your valuation holds up under review.
Safe harbor status means your 409a valuation is presumed accurate unless the IRS can prove otherwise.
To get this status, your 409a valuation provider will need to follow USPAP standards and methodologies.
This is something that Eton Venture Services provides as a core part of our valuation process, ensuring that your valuation stands up to the most rigorous examination and that the burden of proof always lies with the IRS.
Schedule a free consultation meeting to discuss your valuation needs.
Chris Walton, JD, is President and CEO and co-founded Eton Venture Services in 2010 to provide mission-critical valuations to private companies. He leads a team that collaborates closely with each client’s leadership, board of directors, internal / external counsel, and independent auditors to develop detailed financial models and create accurate, audit-ready valuations.
