409A valuations and your cap table (what founders should know)
CapTableFree does not perform 409A appraisals. Learn what a 409A is and how to keep cap table data ready for your valuation provider.
If you grant stock options to US employees, you will hear about IRC Section 409A. CapTableFree is not a valuation provider; this article explains what founders should know and how your cap table fits in.
A 409A valuation is an independent appraisal of the fair market value of common stock. Option strike prices are usually set at or above that FMV so grants can avoid certain tax problems under IRS rules.
CapTableFree does not perform 409A valuations. We focus on accurate cap table records you can export for counsel or a qualified appraiser.
Before a 409A, diligence teams expect clean history: issued shares, option pool, grants, SAFEs and notes modeled correctly, and vesting captured consistently.
When you engage an appraiser, you typically share financing documents, a current cap table export, and any material events since the last valuation. Keeping everything in one system reduces errors and rework.
Manage your cap table free
CapTableFree is unlimited free cap table software: self-serve signup, shareholders, funding rounds, users, and reports. We do not sell 409A valuations; we help you keep data ready for your appraiser.
Create free accountCapTableFree is built for founders who want professional cap table management with zero platform fees.