Question 1

Do I need a 409A before I have raised a priced round?

Accepted Answer

If you are granting stock options, yes. The requirement attaches to the grant, not to the round — the strike price of your first grant needs support on the day it is set.

Question 2

We have only raised on SAFEs. What do you value against?

Accepted Answer

Primarily the asset approach — the cost to recreate what the business has built — cross-checked against the terms of the SAFEs themselves, including any valuation cap, which is evidence of what investors thought the company was worth.

Question 3

How long is the valuation good for?

Accepted Answer

Twelve months, or until a material event — most commonly your first priced round, which invalidates it the day it closes.