How Frequently Are Companies Required to Have a 409A Valuation?

Typically, companies will have a 409A valuation at least once every 12 months. However, if there are significant events such as a new funding round, material change in the business, or substantial financial growth, a new valuation may be needed sooner to reflect these changes accurately.

Should I Do a 409A Valuation by Myself?

No. 409A valuations are complex and require a deep understanding of financial modeling, tax laws, and market analysis.

What Are the Consequences for Not Performing a 409A Valuation?

If the IRS deems stock options to be undervalued, employees may face immediate taxation on vested options and an additional 20% penalty tax, plus interest. The company may also face penalties for failing to withhold taxes properly.

Edge AI Statistics: Everything Investors Need to Know

November 4, 2023
Research & Commentary

Written by Chris Walton, JD

Learn About the Author

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.

As generative AI continues to transform industries, a new frontier—Edge AI—is gaining traction and shaping the future of AI technology.

Unlike traditional AI, which relies on centralized data centers, Edge AI operates directly on local devices like smartphones, cars, and PCs. This shift promises faster, personalized user experiences, such as real-time translation on your phone or an AI assistant in a self-driving car.

The potential growth of Edge AI is immense, with projections suggesting it will handle half of all enterprise data by 2025.

For investors, Edge AI opens up exciting new opportunities in hardware, infrastructure, and services, as more companies embrace this innovative approach.

Here are 16 key statistics for investors highlighting the growth and impact of Edge AI:

Market Growth: The global Edge AI market is projected to grow at a compound annual growth rate (CAGR) of 21.0% from 2023 to 2030. Source: Grand View Research, Edge AI Market Size, 2023
Market Size: The Edge AI market size was valued at USD 14.79 billion in 2022 and is expected to reach USD 66.48 billion by 2030. Source: Grand View Research, Edge AI Market Size, 2023
Edge AI Software Growth: The Edge AI software market is anticipated to grow at a CAGR of 28.8% from 2024 to 2030. Source: Grand View Research, Edge AI Market Size, 2023
Edge AI Accelerators Market: Valued at USD 5.94 billion in 2023, the Edge AI accelerators market is expected to grow at a CAGR of 30.7% from 2024 to 2030. Source: Grand View Research, Edge AI Market Size, 2023
Edge AI Chips Market: The Edge AI chips market is projected to reach USD 60.2 billion by 2028, up from USD 31 billion in 2022. Source: Grand View Research, Edge AI Market Size, 2023
Edge Computing Market: The global edge computing market size was valued at USD 16.45 billion in 2023 and is expected to grow at a CAGR of 36.9% from 2024 to 2030. Source: Grand View Research, Edge AI Market Size, 2023
Edge Data Center Market: Valued at USD 9.36 billion in 2022, the edge data center market is projected to grow at a CAGR of 18.4% from 2023 to 2030. Source: Grand View Research, Edge AI Market Size, 2023
Edge Analytics Market: The global edge analytics market size was valued at USD 7.27 billion in 2022 and is expected to grow at a CAGR of around 25.3% from 2023 to 2030. Source: Grand View Research, Edge AI Market Size, 2023
AI Accelerator Market: The global AI accelerator market size was estimated at USD 19.89 billion in 2023 and is projected to grow at a CAGR of 29.4% from 2024 to 2030. Source: Grand View Research, Edge AI Market Size, 2023
Multi-access Edge Computing Market: Valued at USD 3.39 billion in 2023, this market is expected to grow at a CAGR of 49.1% from 2023 to 2030. Source: Grand View Research, Edge AI Market Size, 2023
Generative AI Market: The global generative AI market size was estimated at USD 13.0 billion in 2023 and is expected to grow at a CAGR of 36.5% from 2024 to 2030. Source: Grand View Research, Edge AI Market Size, 2023
Healthcare Adoption: By 2025, over 50% of data analysis using deep neural networks is expected to occur directly at the point of data capture in edge systems, up from single-digit percentages in 2021. Source: Dateurope, State of Edge AI, 2024
Manufacturing Market Share: The manufacturing industry currently accounts for approximately 31% of the Edge AI market, with applications primarily in automation and predictive maintenance. Source: Dateurope, State of Edge AI, 2024
Traffic Management Efficiency: Implementing Edge AI in urban infrastructure has shown potential to reduce traffic congestion by up to 30% through real-time adjustments of traffic signals based on live data. Source: Dateurope, State of Edge AI, 2024
Retail Inventory Management: Edge AI has enabled a 20% reduction in stockouts and overstock situations by providing real-time insights into inventory levels and customer demand. Source: Dateurope, State of Edge AI, 2024
Energy Consumption Reduction: Smart energy monitoring through Edge AI has helped households and businesses reduce energy usage by an average of 15%, promoting both cost savings and sustainability. Source: Dateurope, State of Edge AI, 2024

These statistics underscore the accelerating adoption and diverse applications of Edge AI across various sectors globally. Investors and business valuation experts should take note of this new technology and how it brings efficiency and IP advantages to businesses.

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Chris Walton, JD

President & CEO

Chris co-founded Eton Venture Services in 2010 to provide mission-critical valuations to venture-based companies. He works closely with each client’s leadership team, board of directors, internal / external counsel, and independent auditor to develop detailed financial models and create accurate, audit-proof valuations.