What’s a Fair 409A Discount?
VC Adventure
AUGUST 15, 2018
As is true today, there was a requirement that options be priced at or above the “fair market value” of the underlying stock (otherwise there would be tax consequences to the optionee and sometimes to the company as well). At the time, the cost of each of these valuations ran between $10,000 and $15,000 annually for each company.
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