A 409A valuation is an appraisal of the fair market value (FMV) of the common stock of a private company by an independent third party. Startups typically get their initial 409A valuation before they issue their first common stock options, and after raising a round of equity financing. They typically also request a 409A valuation upon receipt of an acquisition offer. Startups use the findings from a 409A valuation to inform the price at which employees can purchase shares of the company’s common stock. A few of the more frequently used independent third parties for conducting a 409A valuation include: Kruz Consulting, Carta, and Shareworks.