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

TechCrunch LogoTechCrunch1 mo ago

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

Quick Summary AI Powered

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.

More Pictures


Article Details

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:

Language: English

Reading Time: 3 minutes read

Article Length: 489 words

Coverage Area: United States

Availability: Desktop Web, Mobile Web

News ID: 9297

View Article Analysis

About TechCrunch

TechCrunch Logo

Main Topics: Startups

Official Website:

Update Frequency: 3 posts per day

Year Established: 2005

Headquarters: United States

News Last Updated: 13h ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT -5:00

News Language: English

RSS Feed: Available (XML)

Website Security: Secure (HTTPS)

Publisher ID: #1

Publisher Details

BEAMSTART brings you the latest news, jobs, and events from all around the world on startups, technology, and business. Stay updated with industry news, plug-in to exciting events, and discover incredible career opportunities with the world's most innovative companies.

© Copyright 2022 BEAMSTART. All Rights Reserved.