409A Valuation 
for Private Companies.

The global leader in audit-ready valuations.


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Qapita is used by companies globally to manage equity awards for employees. Attract and retain your talent using Qapita.

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Trusted and Accurate Valuations

With over 500+ valuations, 1,000+ plans designed, and 1,800+ clients, Qapita promises to help your company in the best way possible to retain and attract talent, in the US and globally. 

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Preparing You for Audit

Our support extends beyond the report. We don’t just deliver a generic valuation report. Our Valuation Analysts take time to understand your business and are there to help walk you through and explain the results and methodology behind your company’s Fair Market Value. We are there to support you with any follow questions from your auditors.

Simple & Seamless Process

With our streamlined approach, your company can submit the data online, and our team can handle the rest. Our technology and expertise allows us to ensure efficient data analysis, accurate valuations and time-delivery, to let your firm comply with regulations and laws. 

Simple and Seamless

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Reliable Results

By carefully analyzing financials, company and industry data, we arrive at a fair and defensible fair market value.

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1) What is a 409A Valuation?

A 409A Valuation refers to the Internal Revenue Code (IRC) Section 409A, which governs the taxation of non-qualified deferred compensation plans. This valuation determines the fair market value of a company’s stock, used for setting the strike price of stock options and other equity-based compensation. Accurate 409 Valuations are crucial to avoid tax penalties for your employees and comply with regulations.

2) How does a 409A valuation work?

Various valuation methods, such as the income, market and asset-based approaches may be used. The final valuation report establishes a defensible value of common stock (ordinary shares) that is required to offer for equity-based compensation for US-based plan participants, ensuring compliance with IRS regulations and avoiding tax penalties for employees receiving non-qualified deferred compensation.

3) Why Do You Need a 409A Valuation?

A 409A valuation would protect your employees from potential tax issues that may arise in the future with the IRS. It also protects the company from bills for lawsuits or tax liabilities. While safeguarding the company from legal liabilities, a 409A valuation also helps the company maintain eligibility for tax benefits and fundraising efforts, by ensuring the stock option prices are all set at a reasonable price.

4) When do you need a 409A valuation?

The IRC 490A Valuations are usually valid only for a maximum of 12 months, or until a material event occurs. A material event refers to something that could and most likely does affect the stock price of a company. A company also needs a 409A valuation before issuing their first common stock options, or after raising a round of venture financing. Additionally, a merger or acquisition also calls for a 409A valuation.

5) How long will the valuation process take?

The duration of a 409A valuation process can vary depending on the complexity of the company's financials and the data availability. Generally, it may take between 2 to 6 weeks for the valuation to be completed, which includes gathering financial information, conducting analysis, and preparing the final report. However, some companies may expedite the process if necessary, but accuracy and compliance should not be compromised.

6) What will be the risks of non-compliance?

Non-compliance with 409A requirements can lead to significant risks for both the company and its employees. The IRS may impose hefty tax penalties on employees, including a 20% additional tax on the deferred compensation amounts. Additionally, employees could face income tax and interest charges on underreported amounts. Non-compliance may also result in legal disputes and damage the company’s reputation, affecting its ability to attract and retain talent and investors.