Laura Moreno
@LauraMoreno_CPA
Why Startup Fundraising Rounds Are Priced Differently from 409A:
Fundraising rounds are priced higher due to preferred shares' rights. 409A valuations focus on common stock FMV, leading to lower valuations and cheaper exercise prices for employees. Values align at IPO/exit.
Fundraising rounds are priced higher due to preferred shares' rights. 409A valuations focus on common stock FMV, leading to lower valuations and cheaper exercise prices for employees. Values align at IPO/exit.
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