How Long Does a 409A Valuation Take?
Understanding the 409A timeline is critical for planning your hiring and option grant schedule. Unlike a bank wire that settles in hours, a proper 409A requires time for data collection, analysis, report drafting, and review.
Standard Timelines by Stage
- Pre-Seed (5–7 business days): Simple asset approach. Minimal data collection. Quick report drafting.
- Seed (5–7 business days): Market comps research. OPM modeling. Comparable company selection. Slightly longer due to cap table complexity.
- Post-Seed / Pre-Series A (7–10 business days): Full DCF. OPM waterfall modeling. Bridge round/SAFE modeling adds time.
- Series A (10 business days): Advanced OPM. PWERM if appropriate. Audit-ready workpapers. Appraiser review and sign-off.
- Series B+ (10–14 business days): Comprehensive PWERM. Multiple scenario modeling. International benchmarking if applicable.
What Causes Delays
Most delays are caused by incomplete information from the client. Common delay factors:
- Missing or outdated financial statements (provide P&L, balance sheet, cash flow)
- Incorrect or outdated cap table (fully diluted, all classes, all option pool details)
- Missing terms for convertible instruments (SAFE amounts, caps, discounts)
- Slow response to appraiser follow-up questions
- Back-and-forth on comparable company selection
Planning Your 409A Around Option Grants
Build your 409A timeline into your hiring calendar:
- Order your 409A 2–3 weeks before you plan to issue offer letters with option grants
- After closing a funding round, order your new 409A within 1–2 weeks
- Set a calendar reminder 11 months after your last valuation date to order the refresh
- For large grant batches (e.g., annual refresh grants), time the 409A to complete before the board approval date