MODE VC / Tools / 16. 409A Strike Estimator
Calculator 16 • IRC Section 409A Common Stock Pricing

409A Valuation & Strike Price Estimator

Estimate your post-round IRC 409A common stock strike price using OPM preferred-to-common backsolve ratios and Discount for Lack of Marketability (DLOM).

1. Last Financing Round Inputs

Preferred Share Price $3.00 100% headline price
409A Common Strike $0.84 28.1% of Preferred
Grant Exercise Cost $63,180 Cash to buy grant
Preferred Spread Value $161,820 Headline vs. Strike

409A Valuation Waterfall (Preferred → OPM → DLOM)

Valuation Step Per Share Implied Equity Value
1. Headline Preferred Round Share Price (1x Liq Pref)$3.00$45,000,000
2. Marketable Common Value after OPM Liquidation Backsolve$1.17$17,550,000
3. Final 409A Strike Price after DLOM (Safe Harbor FMV)$0.84$12,636,000