u/DeAnTE96

Hey folks,

We’re a ~1-month-old startup, pre-revenue, pre-product, basically just incorporated and getting started. We’re looking to grant stock options to our first employees, but paying $1k for a 409A valuation feels excessive given that we have no revenue, no product, and no real assets yet.

Is it reasonable to do a 409A valuation ourselves at this stage with a defensible fair market value (and minimal audit risk)? Or is there a legit low-cost / almost free option founders typically use this early? I have been a founder of another startup before for 5+ year but no VC experience.

Would love to hear how others handled this at the very beginning. Thanks!