The 409A valuation should be used.[1] Definitely not the fundraising valuation for preferred shares. Employees should use the 409A too when trying to evaluate

The 409A valuation should be used.[1] Definitely not the fundraising valuation for preferred shares. Employees should use the 409A too when trying to evaluate competing offers. While early 409A evaluations can be a bit of a swag they are much more reasonable then fundraising valuations. Example, left a seed stage startup where the founder liked to brag about the $10 million dollar valuation (had a convertible note with a $10 million cap so not really a valuation). The 409A was at $2 million, which was much more reasonable for the progress, potential, and risk. [1] https://www.quora.com/What-is-a-409A-valuation https://www.quora.com/What-is-a-409A-valuation