409A Valuation: The Complete Guide

An underpriced option grant doesn't cost the company. It costs the employee, in the year it vests, whether or not they've touched a dollar of cash. This guide walks through the actual OPM back solve math appraisers run, the three IRS safe harbors, and exactly what voids one and why.

What you get:

• The actual OPM backsolve math how a $2.00 preferred price becomes a $0.50 common stock strike price

• All three IRS safe harbor methods explained, and which one applies to your company's stage

• Five red flags that void safe harbor, plus a worked example of what "just using the round price" actually costs

• Real 2026 timeline and cost benchmarks by stage, from pre-seed ($1K–$3K) to Series C+ ($5K–$15K+)