409A Valuation for a Venture-Backed Fintech
The Challenge
A venture-backed fintech company completing its Series C round needed a 409A valuation that would be defensible with auditors while reflecting the company's complex capital structure — including multiple classes of preferred stock, convertible notes, and outstanding warrants.
Our Approach
FYNX applied the Option Pricing Method (OPM) with a Black-Scholes framework to allocate enterprise value across the capital structure. We conducted detailed market analysis using comparable public companies and recent transactions, applied appropriate discounts for lack of marketability (DLOM), and documented all assumptions to auditor standards.
Measurable Results
Valuation completed and delivered in 18 business days
Report accepted by Big 4 auditor without any questions or adjustments
Common stock value supported appropriate strike prices for the company's ESOP
Methodology documentation withstood subsequent IRS inquiry without modification