2026 Comparison
Best Startup Valuation Tools & 409A Services
A valid 409A valuation is legally required before issuing stock options. Compare the top valuation providers by cost, turnaround time, methodology, and audit defense.
Quick Answer
Carta 409A is the most widely accepted valuation service, trusted by auditors and seamlessly integrated with their cap table platform. Eqvista offers the most affordable option at $990 per valuation. For complex capital structures (multiple share classes, secondary transactions), Aranca provides bespoke advisory-grade valuations.
Key Takeaways
- 1.409A valuations are legally required before issuing stock options — no exceptions
- 2.Budget $990-5,000 per valuation for most startups; complex structures cost $5K-15K
- 3.Get a new 409A after every funding round or material event, and at minimum every 12 months
- 4.Carta 409A is most widely accepted by auditors due to market share and methodology
- 5.Self-prepared valuations are not defensible — always use a qualified independent appraiser
| Metric | Carta 409A | Eqvista |
|---|---|---|
| Starting Price | Quote-based (not published) | $990 |
| Turnaround | 2-3 weeks | 7-10 days |
| Cap Table Included | With Carta plan | Free |
| Auditor Acceptance | Highest | Good |
| Complex Structures | Strong | Basic |
| Audit Defense | Included | Included |
Carta 409A
Top PickThe most widely used 409A valuation service
Pros
+ Most widely accepted by auditors
+ Fast turnaround (2-3 weeks)
+ Seamless cap table integration
+ Large data set for comparables
Cons
- Bundled pricing favors Carta ecosystem
- Less customization than boutique firms
- Can be formulaic for complex structures
- Standalone pricing is premium
Eqvista
Affordable 409A valuations and equity management
Pros
+ Most affordable 409A option
+ Free cap table included
+ Fast turnaround (7-10 days)
+ Good for simple structures
Cons
- Less brand recognition with auditors
- Simpler methodology than Carta
- Limited to US companies
- Smaller team for complex cases
Aranca
Global valuation advisory for complex structures
Pros
+ Handles complex multi-class structures
+ Global coverage and standards
+ Strong audit defense track record
+ Bespoke methodology per engagement
Cons
- Premium pricing not suited for seed stage
- Longer turnaround (3-4 weeks)
- Requires more GP involvement
- No self-service software component
Scalar
Tech-forward 409A valuations
Pros
+ Modern digital-first process
+ Strong audit defense
+ Competitive pricing
+ Quick data collection
Cons
- Newer firm with less track record
- Less useful for pre-revenue companies
- No cap table software included
- Limited to US market
Preferred Return
Boutique 409A for early-stage startups
Pros
+ Very affordable for early stage
+ Fast turnaround
+ Personal service with phone access
+ Simple process
Cons
- Not suited for complex structures
- Smaller team limits capacity
- Less sophisticated modeling
- No software platform
Still waiting on a fund management quote?
Carta charges enterprise prices for workflows many sponsor-led teams do not need. Archstone is built for private capital operators, and it publishes its price: $297/mo.
Frequently Asked Questions
What is a 409A valuation?
A 409A valuation determines the fair market value (FMV) of a private company's common stock. It is required by the IRS before issuing stock options to employees. Without a valid 409A, employees face potential 20% tax penalties on their option grants under Section 409A of the Internal Revenue Code.
How often do I need a 409A valuation?
At minimum, every 12 months. You also need a new 409A after any material event that could change your company's value — such as a funding round, significant revenue milestone, acquisition offer, or major pivot. Most companies get a new 409A every 6-12 months or after each funding round.
How much does a 409A valuation cost?
Prices range from $990 (Eqvista) to $15,000+ (boutique advisory firms for complex structures). Most Series A-C startups pay $1,500-5,000. The cost is a legitimate business expense and is negligible compared to the tax liability risk of not having one.
How long does a 409A valuation take?
Standard turnaround is 2-3 weeks. Expedited options are available from most providers for an additional fee, typically reducing turnaround to 5-7 business days. The bottleneck is usually the company providing the required financial data, not the valuation firm's analysis.
Can I do my own 409A valuation?
No. The IRS requires that 409A valuations be performed by a qualified, independent appraiser. Self-prepared valuations are not defensible in an audit. Using a recognized provider creates a 'safe harbor' presumption that the valuation is reasonable.