409A basics for founders

• A 409A valuation is an independent appraisal of what your common shares are worth today. This FMV becomes the baseline strike price for new stock option grants.​

• A current 409A valuation gives you “safe harbor” protection: if it is recent and there has been no major change in the business, the burden is on the IRS to prove it is unreasonable.

• You generally need a fresh 409A:

  • Before issuing options under a new or updated plan.

  • After a material event (funding round, major acquisition, big revenue jump).

  • At least every 12 months.

How Mantle's 409As work

Mantle partners with independent valuation experts and packages the full process into one of its paid plans, Mantle Growth, so you don't have to source or manage a separate provider.

With Mantle Growth, you get:

• One audit-ready 409A valuation per year, bundled with full access to Mantle's cap table platform and priority customer support.

• Auto-sync to your cap table: once your valuation is complete, the FMV is updated directly in Mantle.

• Startup-focused analysts: Mantle's valuation partners specialize in early and growth-stage startups, including companies raising on SAFEs, notes, and preferred rounds.

Timeline and review process

Once the documents are received, they will be reviewed within 1-2 business days. If additional information is needed, you'll be contacted via email. Once this is complete, you'll receive a draft valuation report in approximately 3-5 business days.

409A valuation cost

Mantle's Growth plan includes one annual 409A valuation for $3,000/year. This also includes:

• Full access to Mantle's cap table platform

• Priority customer support

Requesting a 409A valuation

1. Confirm your plan and kick off

   Before starting the 409A process:

   • Make sure you are on the Mantle Growth plan or ready to upgrade.

   • You can contact support@withmantle.com at any time to request an upgrade or 409A.

   
   

2. Submit required documents

   These documents help Mantle and the independent valuation partner build a defensible, audit-ready report.

   Documents
   General company information Certificate or Articles of Incorporation and any amendments Latest company presentation or pitch deck List of management personnel and their titles
   Valuation details Intended date of valuation for common stock Any previous 409A valuation reports, if available
   Financial information Historical financial statements (last 3-4 years, or since inception) Financial projections for the next 3-5 years (high-level estimates are fine at early stage) Revenue and EBITDA expectations for the next 2-3 years Copies of any SAFE agreements or Convertible Note agreements
   Equity and cap table Latest capital structure and option ledger Estimated number of options you expect to issue in the next 6-12 months
   Secondary transactions (if applicable) If you have had any secondary transactions involving company stock, include: Type of security transacted Reason for the transaction Transaction price and how it was determined Number of shares involved Buyer(s) and seller(s) Whether you expect similar transactions in the near future
   In-kind investment/sweat equity (if applicable) If any executives have taken below-market salaries or contributed significant sweat equity: Name and title Time period with reduced salary Approximate percentage of time dedicated to the company Estimated fair-market salary for their role Actual salary received since inception
   Below-market operating expenses (if applicable) If any notable expenses are below market (e.g. discounted or free rent): Nature of the expense Amount recorded in your books Estimated market rate

   
   

3. Upload to Mantle and notify support

   Once you have your documents:

   • Upload to the Data Room

   • Send an email to support@withmantle.com indicating your 409A package is ready

Additional resources

For more information about 409A valuations, read our 409A Valuation Guide for Startups.