Top 10 409A Valuation Firms in USA
Jeet Chaudhary
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If you run a startup in the United States, you will eventually need a 409A valuation.
In fact, if you plan to issue stock options to employees, the IRS requires you to have a defensible fair market value for your company’s common stock.
This is what a 409A valuation provides.
Without it, you risk penalties, tax problems for your team, and serious compliance issues.
A 409A valuation may sound technical, but at its core, it protects both you and your employees. It sets the strike price for stock options and ensures everyone avoids unexpected tax consequences.
According to IRS IRC Section 409A, private companies must refresh their valuation at least once every 12 months or sooner if a “material event” occurs. You can learn more about these rules directly from the IRS.
Choosing the right 409A valuation firm is one of the most important decisions you will make as a founder.
A poor-quality valuation can create IRS exposure, raise audit risks, inflate the strike price for employees, or lead to messy negotiations with investors. On the other hand, a strong valuation firm gives you peace of mind, audit-ready reports, and a clear understanding of your company’s value.
In this guide, you will discover the top 10 409A valuation firms in the USA, broken down into easy-to-read overviews with pros, cons, key services, and who each firm is best for.
What Is a 409A Valuation?
A 409A valuation is an independent appraisal of the fair market value of your company’s common stock.
If you want to issue stock options to employees in the United States, the IRS requires you to have a 409A valuation in place.
It sets the strike price for employee options and protects both you and your team from unexpected tax penalties.
The rules for this requirement come from IRS Section 409A, which was created to prevent companies from manipulating option pricing.
The main benefit of a 409A valuation is safe harbor protection. When you hire a qualified third-party firm to conduct your valuation, the IRS assumes the valuation is correct unless it can prove it is “grossly unreasonable.”
This safe harbor status gives you strong legal and financial protection. It also ensures your employees do not face additional income taxes or penalties under Section 409A.
The IRS breaks down these rules in its official guidance.
In short, a 409A valuation is not just a compliance requirement. It is a key part of running a responsible, investor-ready startup and protecting your employees’ financial future.
Comparison Table: Top 10 Firms at a Glance
Choosing the right 409A valuation firm becomes much easier when you compare the top options side by side.
Below is a simple table that highlights pricing, strengths, turnaround time, and ideal company stage. This gives you a quick snapshot of what each firm offers so you can choose the one that fits your needs best.
| Firm | Price Range | Turnaround Time | Audit Support | Human Analyst Involvement | Notes |
|---|---|---|---|---|---|
| Virtue CPAs | Medium to Premium | 5–10 business days | Excellent | Very High | Most defensible reports and personalised service |
| Carta | Medium | 5–7 business days | Strong | Medium | Great software integration and widely trusted |
| Eqvista | Low | 3–7 business days | Good | Medium | Very affordable and ideal for early-stage startups |
| Aranca | Medium to Premium | 10–15 business days | Strong | High | Highly detailed research and global expertise |
| Scalar | Medium | 7–12 business days | Strong | High | Strong modelling and startup specialisation |
| Andersen | Premium | 10–20 business days | Excellent | Very High | Extremely robust, audit-focused valuations |
| Economics Partners | Premium | 10–20 business days | Excellent | Very High | Ideal for complex, technical financial modelling |
| Redwood Valuation Partners | Medium to Premium | 10–20 business days | Strong | Very High | Trusted Silicon Valley firm |
| Brex 409A | Low to Medium | 3–7 business days | Limited | Medium | Fast and simple, best for basic valuations |
| Friedman LLP | Medium to Premium | 7–15 business days | Strong | High | Large accounting and advisory firm |
Top 10 409A Valuation Firms in USA
Below are the top 10 409A valuation firms in the United States.
Each firm is presented with an easy-to-read overview, key services, pros and cons, and who the firm is best suited for.
1. Virtue CPAs (Ranked #1 — Best Overall)
Virtue CPAs provides leading 409A valuation services in the USA, combining deep valuation expertise, strong IRS compliance support, and founder-friendly processes.
Our team consists of credentialed analysts (CPAs, CFAs), and they regularly guide startups through audits, funding rounds, and option-pricing safe harbor scenarios.
Many startup founders choose Virtue CPAs because they offer a smooth process, transparent pricing, and detailed reports that meet IRS safe harbor requirements. Their experience covers everything from pre-seed startups to pre-IPO companies.
The firm is also highly rated for its client service, timely delivery, and personalized communication.
Because of the strong balance of defensibility, clarity, and service, Virtue CPAs is ranked as the best among the ten firms listed here for startups seeking a 409A valuation they can rely on.
Key Services
- 409A valuations
- Financial modeling and scenario analysis
- Equity compensation advisory
- ASC 718 support and cap-table consulting
Pros
- Strongest audit-defensibility among the top 10
- Experienced valuation analysts
- Transparent pricing and responsive support
- Works across all startup stages
Cons
- More premium pricing than very basic automated platforms
- High client demand may lead to limited availability during peak periods
Ideal For
Startups at all stages that want the highest-quality, most reliable 409A valuation with human analyst review and strong compliance backing.
2. Carta
Carta is one of the most well-known 409A valuation providers in the startup world.
It is widely used for cap table management, equity administration, and 409A valuations. Carta serves more than 40,000 companies, according to its public reporting.
Because Carta integrates valuations with cap table data, the entire process is streamlined for founders and finance teams.
Carta is especially popular with early-stage and Series A startups because it offers quick turnaround times, clean software tools, and audit-defensible reports. The company’s valuation analysts follow recognized standards for financial modeling and market comparables.
Key Services
- 409A valuations
- Cap table management
- Equity compensation support
- ASC 718 expense reporting
- Fund administration (venture funds)
Pros
- Fast turnaround
- Integrated cap table and valuation workflows
- Large analyst team
- Strong IRS safe harbor defensibility
- Easy-to-use software
Cons
- Higher pricing for later-stage valuations
- Customer service varies depending on plan tier
Ideal For
Startups from pre-seed to Series B that want a simple, software-integrated 409A valuation solution.
3. Eqvista
Eqvista is known for offering affordable, high-quality 409A valuations, especially for early-stage companies.
They combine software automation with human analyst review, which keeps costs low while maintaining defensibility. Eqvista also provides cap table tools, which many founders appreciate.
Eqvista’s valuation methods align with AICPA and NACVA guidelines, making their reports suitable for investor due diligence and IRS audits. Their affordable pricing is ideal for founders on a tight budget.
Key Services
- 409A valuations
- Cap table management
- Equity compensation support
- Financial modeling services
Pros
- Very competitive pricing
- Quick delivery
- Professional valuation team
- Easy cap table integration
Cons
- Not ideal for late-stage or highly complex valuations
- Smaller analyst team than larger firms
Ideal For
Pre-seed and seed-stage startups looking for a reliable but affordable valuation provider.
4. Aranca
Aranca is a global research and valuation firm with deep expertise in finance, market analysis, and intellectual property valuation.
Their 409A services are analyst-led, meaning every report is prepared manually by a team of valuation professionals.
With more than two decades of experience, Aranca is known for highly defensible reports, making them a strong choice for companies preparing for audit, fundraising, or M&A activity.
They often use market data from sources like PitchBook and Capital IQ for their comps.
Key Services
- 409A valuations
- Financial modeling
- Market research
- IP and patent valuation
- Commercial due diligence
Pros
- Highly detailed reports
- Strong analyst team
- Excellent audit support
- Suitable for complex valuations
Cons
- More expensive than automated platforms
- Longer turnaround times
Ideal For
Later-stage startups or companies with complex equity structures that need a highly defensible valuation.
5. Scalar
Scalar is a respected valuation firm focusing on early-stage and high-growth companies.
They specialize in 409A valuations, fairness opinions, and financial advisory work. Their analyst team has significant experience with technology, SaaS, and venture-backed startups.
Scalar’s reports are known for their depth and clear justification of assumptions. They use recognized valuation methods and industry data, often referencing comparables from Damodaran Online.
Key Services
- 409A valuations
- ASC 718 reporting
- Fairness opinions
- Financial advisory services
- Enterprise valuations
Pros
- Strong analyst-led process
- Reliable and well-documented reports
- Easy communication with analysts
Cons
- Pricing higher than software-driven firms
- Some wait times during peak seasons
Ideal For
Tech and SaaS companies that need high-quality, defensible valuation work.
6. Andersen
Andersen (formerly Andersen Tax) is a major global tax and valuation firm known for extremely rigorous analysis.
They are widely trusted for audit-ready valuation reports that comply with IRS, GAAP, and AICPA standards. Because Andersen works with companies of all sizes, they have deep expertise across industries.
Their team includes CPAs, CFAs, and credentialed valuation experts, making them a top-tier provider for companies that expect audits or significant due diligence.
Key Services- 409A valuations
- Business valuations
- Tax advisory
- ASC 718 and ASC 820 reporting
- Transfer pricing
- Very strong audit defensibility
- Deep technical expertise
- Suitable for late-stage and pre-IPO companies
- Expensive
- Longer timelines due to detailed analysis
Growth-stage, late-stage, and pre-IPO startups needing premium valuation quality.
7. Economics Partners
Economics Partners specializes in valuation, transfer pricing, and economic modeling.
They are highly respected for their technical rigor and are frequently selected by companies preparing for IPO or large fundraising rounds. Their team includes PhDs, CFAs, and economists.
They have strong experience in 409A valuations, especially for tech, biotech, and fintech companies. Their reports often rely on detailed market data from resources and high-quality public transactional data.
Key Services- 409A valuations
- Financial modeling
- Transfer pricing
- Fairness opinions
- Strategic valuation consulting
- Highly technical and detailed analysis
- Excellent for complex equity structures
- Trusted by auditors and investors
- Premium pricing
- Reports can take longer due to depth
Late-stage startups, pre-IPO companies, and businesses with complex financial models.
8. Redwood Valuation Partners
Redwood Valuation Partners is a specialized valuation firm well-known in Silicon Valley.
Their analysts focus heavily on startup valuations, option pricing models, and advanced statistical methods. They follow strict compliance standards, making their reports highly audit-defensible.
Redwood often works with growth-stage technology companies and venture-funded startups. Their team regularly applies methodologies aligned with AICPA and NACVA standards.
Key Services- 409A valuations
- Complex security valuations
- ASC 718 reporting
- Portfolio valuations
- Financial modeling
- Highly experienced analysts
- Excellent for complex cap tables
- Strong market reputation
- Higher cost
- Limited availability during peak fundraising seasons
Tech companies with complex securities and multi-class share structures.
9. Brex 409A
Brex, best known for its corporate cards and startup banking tools, also provides 409A valuations.
Their valuation service is streamlined, software-driven, and designed for speed. They primarily focus on early-stage and seed-stage companies.
Brex integrates valuation features directly into its financial platform, which makes documentation and data submission easy for founders.
Key Services- 409A valuations
- Business banking
- Spend management tools
- Startup financial dashboards
- Fast turnaround times
- Easy integration for startups already using Brex
- Affordable pricing
- Not ideal for complex valuations
- Less robust analyst involvement compared to traditional firms
Early-stage startups that want an affordable and fast valuation option.
10. Friedman LLP
Friedman LLP is a well-established accounting and advisory firm with a strong valuation practice.
They are known for producing highly defensible reports suitable for audit, compliance, and investor due diligence. Their valuation team follows strict AICPA and GAAP standards.
Because Friedman is a larger firm, they offer broader financial and tax expertise alongside valuations, making them a great fit for companies approaching growth or pre-IPO stages.
Key Services- 409A valuations
- Business valuations
- Audit and tax services
- ASC 718 and ASC 820 reporting
- Consulting and advisory
- Large, credible organization
- Strong audit support
- Comprehensive service offerings
- Higher fees
- Best suited for established companies rather than early-stage startups
Growth-stage companies and late-stage startups preparing for audits or complex financial events.
How to Choose the Best 409A Valuation Firm
Choosing the right 409A valuation firm can feel overwhelming, especially if this is your first time dealing with valuations or equity compensation.
But the truth is, selecting a reliable firm makes the entire process smoother, safer, and far more defensible during audits or due diligence.
The best firms combine strong valuation expertise with clear communication, transparent pricing, and high-quality reports that follow industry standards.
Here are the key factors you should consider before choosing a provider.
Experience With Startups and High-Growth Companies
Startups have unique business models, limited financial histories, and fast-changing conditions. Because of this, you want a valuation firm that understands early-stage dynamics.
Firms that specialize in venture-backed companies typically follow standards from the AICPA and valuation best practices set by the IVSC.
A provider with real startup experience is less likely to overvalue or undervalue your company, which helps avoid future IRS concerns.
Pricing Transparency
409A valuations vary widely in price. Early-stage valuations can cost as little as 1,000 dollars, while late-stage or complex reports can reach 10,000 dollars or more.
Many founders rely on market research from PitchBook and Carta’s pricing insights to understand typical costs.
A reputable firm will explain its pricing before you commit. Avoid providers who give vague quotes or charge hidden fees for updates or audit support.
Turnaround Time
Most providers complete a 409A valuation in 5 to 15 business days.
Some offer expedited services for an additional fee. When timing matters, especially during fundraising or board approvals, a fast turnaround can make all the difference.
Investor timelines often follow typical due diligence periods outlined by NVCA.
Speed is helpful, but accuracy matters more. Always ensure the firm balances both.
Analyst Qualifications
Your valuation should be prepared by trained analysts who understand financial modeling, market comps, and IRS regulations.
Many top analysts hold credentials such as CVA, CFA, or CPA. You can verify credential standards through the National Association of Certified Valuators and Analysts (NACVA) and the CFA Institute.
Qualified analysts are essential for an IRS-defensible report.
Audit Support
Audit support is one of the most important features you should look for.
If the IRS ever questions your valuation, you want a firm that will stand behind its work. Some firms include audit support at no extra cost, while others charge additional fees. Audit support expectations are explained in the valuation guidelines published by the IRS.
Without strong audit backing, your company could face unnecessary risk.
Industry Specialization
Different industries have different valuation norms.
Tech, biotech, manufacturing, consumer products, and SaaS companies all require different modeling approaches. Using industry comps from places like Damodaran Online or market intelligence from IBISWorld helps firms produce more accurate results.
Choosing a firm with experience in your industry reduces errors and improves defensibility.
Quality of Reports
A good 409A valuation report should be clear, detailed, and fully supported by data.
It should explain the methods used, justify assumptions, and include industry comparables. Investors and auditors often expect to see methods like the market approach, the income approach, or the option pricing model.
These methodologies follow standards from the AICPA and IVSC.
If a report looks thin or lacks documentation, it may not stand up to scrutiny.
Final Thoughts
Choosing the right 409A valuation firm is one of the most important decisions you will make as a founder.
A solid valuation protects you, protects your employees, and keeps your company compliant with IRS rules. It also gives you confidence when issuing options, preparing for a fundraising round, or going through due diligence.
When you work with a reliable valuation provider, you do not have to worry about surprises, mistakes, or complications later.
This is why Virtue CPAs stands out at the top of the list. Our team brings together years of valuation experience, advanced modeling knowledge, and a commitment to delivering clear, audit-ready reports.
We follow the same professional standards used by the industry’s leading valuation bodies, and we take the time to understand your business so the valuation truly reflects its reality.
If you want a valuation that gives you IRS safe harbor protection, peace of mind, and long-term reliability, contact Virtue CPAs for a personalized consultation.
Frequently Asked Questions
Jeet Chaudhary
Jeet Chaudhary serves as the Chief Operating Officer at Virtue CPAs, where he leads the firm’s Global Control Centre and oversees end-to-end operational excellence.
