Remove Compliance Remove Market Risk Remove Terminal Value
article thumbnail

Startup Valuation: The Ultimate Guide

Equidam

with Section 409A) require companies to establish the Fair Market Value (FMV) of their common stock through a formal valuation process. [6] It’s crucial for tax compliance and ensuring options have real economic value. a 409A valuation for tax compliance [14] ) cannot be directly substituted for another (e.g.,

article thumbnail

Startup Valuation: The Ultimate Guide for Founders

Equidam

11] The pricing often references the last primary round’s valuation or a formal 409A valuation, but negotiation considering company performance and market conditions is common. [11] 11] [13] Internal/Compliance (e.g., 11] [13] Internal/Compliance (e.g., This premium rises when perceived market risk increases. [27]