409A Valuations

Section 409A of the Internal Revenue Code requires that stock options be issued at fair market value on the date of the grant. A 409A valuation is the means by which companies determine what fair market value should be. The safe harbor for 409A valuations lasts one year, so companies typically have these performed annually, unless a material event such as a fundraise changes the valuation of the company as a whole.  

Learn more in our free 409A Valuation Guide. 

Fidelity Private Shares centralizes the full 409A workflow: 

• Integrated forms: Instead of emailing documents, you can respond to structured questions about financials, the team, legal matters, etc. 

• Document upload: Upload all required files (e.g., cap table, charters, legal agreements) directly in-platform. 

• Valuation provider integration: Fidelity Private Shares passes your materials seamlessly and securely to the provider. 

Many competitors use methodologies and data sets that lead to valuations that may not stand up to auditor scrutiny. We connect you with with third party 409A Valuation Report providers based on your company’s individual needs. 

The independent valuations come with access to the valuation expert.

Getting a 409A takes approximately 2 weeks. However, this is contingent on your company responding to requests for support materials and answers to outstanding questions in a timely manner.  

You will submit information and then the provider reviews and asks questions. Once answered, they will prepare a draft for your review and schedule a conversation. Afterwards, you will get and approve a final draft. You will have access to the provider for any questions. 

Typically, yes. 

A 409A report typically covers all option grants issued in the following 12‑month period, unless a material event triggers the need for an update. 

Fidelity Private Shares keeps track of the 12-month period, automatically reuses the valuation in future grant workflows, and alerts you once the valuation has become stale.