AI-Powered 409A Valuation
for Startups — $999
IRS-defensible 409A valuations powered by AI analysis and reviewed by a licensed accountant. Issue stock options with confidence — without paying $3,000+ at a traditional firm.
What is a 409A valuation?
A 409A valuation is an independent appraisal of the fair market value (FMV) of a private company's common stock. The name comes from IRC Section 409A of the Internal Revenue Code, which requires companies to set option strike prices at or above FMV.
Without a valid 409A, employees who receive stock options face serious tax consequences: their options become immediately taxable as income — even before they exercise them — plus a 20% excise tax penalty.
Every startup that issues stock options needs a 409A valuation. The valuation is valid for 12 months or until a material event (like a new funding round) occurs, whichever comes first.
Why startups need 409A valuations
- Required before issuing any stock options to employees
- Protects employees from IRS penalties on unvested options
- Establishes defensible strike price for option grants
- Required by investors during due diligence
- Needed before closing a funding round
Penalty without a 409A
Options issued below FMV are subject to immediate income tax on the spread plus a 20% excise tax under IRC Section 409A — even before exercise.
How our AI-powered 409A process works
From submission to IRS-defensible report in 48 hours — not weeks.
Submit your financials
Complete our guided 4-step wizard with your company info, financials, and cap table. Takes about 15 minutes.
AI analysis
Our AI researches comparable companies, runs discounted cash flow (DCF) and option pricing model (OPM) analyses, and generates a complete report draft.
Accountant review
A licensed accountant reviews the AI analysis, validates all assumptions, and provides professional sign-off. This is what makes the report IRS-defensible.
Report delivered
Your complete IRS-defensible 409A report appears in your dashboard within 48 hours, ready to use for all option grants.
409A valuation cost comparison
The same IRS-defensible quality — at a fraction of traditional prices.
| Provider | Price | Turnaround | IRS Safe Harbor |
|---|---|---|---|
| OpenCap Stack | $999 | 48 hours | Yes |
| Carta | ~$3,000 | 1–2 weeks | Yes |
| Traditional accounting firm | $5,000–$15,000 | 2–4 weeks | Yes |
Why founders choose OpenCap for 409A
IRS safe harbor compliance
Meets IRC Section 409A safe harbor requirements. A licensed accountant reviews every report before delivery — not just AI output.
48-hour turnaround
48 hours vs. 2–4 weeks at traditional accounting firms. Issue option grants without waiting weeks for a valuation.
Automatic trigger detection
We monitor your cap table and alert you when a material event (new funding round, new hire milestones) requires a new valuation.
$999 flat fee — no surprises
One price regardless of company stage or complexity. No hourly billing, no per-round fees, no hidden costs.
Integrated with your cap table
Your cap table data flows directly into the valuation analysis — no manual re-entry, no formatting spreadsheets for accountants.
Dashboard delivery
Your completed report lives in your OpenCap dashboard, accessible to your legal counsel, board, and auditors at any time.
409A valuation — frequently asked questions
What is a 409A valuation?
A 409A valuation is an independent appraisal of the fair market value (FMV) of a private company's common stock. It's required by the IRS under IRC Section 409A before a company can issue stock options to employees. Without a valid 409A, employees may face immediate income tax and a 20% excise tax penalty on unvested options.
How much does a 409A valuation cost?
OpenCap Stack charges a flat $999. Traditional accounting firms charge $5,000–$15,000. Carta charges approximately $3,000. Our AI-powered process delivers the same IRS-defensible quality at a fraction of the cost — no hidden fees, no per-round pricing.
How long does a 409A valuation take?
We deliver your completed report within 48 hours of receiving complete financials. Traditional firms take 2–4 weeks. Carta typically takes 1–2 weeks.
When do I need a new 409A valuation?
A 409A valuation expires after 12 months or after a material event — whichever comes first. Material events include closing a new funding round, significant revenue changes, or a major acquisition. OpenCap Stack automatically monitors your company for these triggers and notifies you.
Is an AI-generated 409A valuation IRS defensible?
Yes. A licensed accountant reviews every AI-generated analysis, validates assumptions, and provides professional sign-off. The report meets IRS safe harbor requirements under IRC Section 409A and carries the same legal standing as one from a traditional accounting firm.
What data do I need to provide?
You will need your most recent financial statements (P&L, balance sheet), your cap table (automatically imported if you use OpenCap), a brief business description, and any recent 409A valuations if available. Our wizard guides you through each step.
Ready to get your 409A valuation?
$999 flat fee. 48-hour turnaround. IRS defensible. Carta charges $3,000+.