How private stock prices work

A 409A is an independent appraisal of a company's common stock, used to set option strike prices for tax purposes. It's typically updated annually or after major events, and it's often conservative relative to what investors pay.

When investors buy preferred shares in a funding round, the per-share price implies a company valuation. But preferred shares carry rights that common (employee) shares don't, so the headline number usually overstates what common stock would fetch.

Marketplaces where existing shareholders sell to eligible buyers generate observed price data between funding rounds. ExitCue's estimated share prices come from live marketplace data. These estimates reflect actual buying and selling interest, but they are still estimates: activity varies by company and by day, and gaps are common.

The 409A, latest round price, and secondary estimates can all differ at the same moment. They measure different shares, at different times, for different purposes. None is “the” price. Treat any single number, including ours, as a reference point rather than a promise.

ExitCue shows the latest estimated share price for your company, with its date, source, and history, plus your personal vested and unvested estimate when you add grants. Check my company →