Uses a stage-based common-stock discount applied to the last preferred. This is a rough sanity check — not a substitute for a real 409A from a qualified appraiser.
What this means
Your option strike price for new grants should be at or above the common FMV per share to avoid 409A penalties. A formal 409A is valid for 12 months or until a material event.
What this 409A means for your options
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Ask anything about your result
The math above is deterministic. AI explains what it means — it never recalculates the numbers.
About
Get a rough fair-market-value estimate for your common stock based on your last preferred round and company stage. Useful for sanity-checking option strike prices before commissioning a formal 409A from a qualified appraiser.
How it works
- 01Enter the post-money valuation of your most recent preferred round and total fully-diluted shares.
- 02We apply a stage-based common-stock discount (75% pre-seed → 15% late stage).
- 03Result is an estimated common per-share FMV — the floor for new option strikes.
Examples
Seed company at $20M post
A seed-stage company that raised at $20M post with 10M shares has a preferred PPS of $2.00. With a ~60% discount, the common FMV lands near $0.80/share — that's the minimum strike for new grants.
Series A at $80M
A Series A at $80M with 12M shares has preferred at ~$6.67. At ~45% discount, common FMV is ~$3.67. Option grants below this strike create 409A penalties.