Late-stage tech companies must do right by their employees: Reassess your 409A valuations

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What does change is the company’s valuation, and that is reflected in the 409A valuation.

It was a record year for companies going public, valuations for pre-IPO companies were skyrocketing, and fundraising also shattered records.

When an employee goes to exercise, or buy, their options, they need to pay taxes on the difference between their strike price and the current FMV.

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Author / Journalist: Ram Iyer

Category: Startups

Topics: Finance Valuation Internal Revenue Service TC Labor Stock market Entrepreneurship EC Future of Work Startups EC Column Stock Talent Column Funding Corporate finance Unicorn

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2022-06-24, 20:00:40

News Timezone: GMT -5:00

News Source URL: techcrunch.com

Language: English

Reading Time: 3 minutes read

Article Length: 489 words

Coverage Area: United States

Availability: Desktop Web, Mobile Web

News ID: 9297

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Coverage Areas: United States

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