Many founders still don’t know precisely how valuation firms arrive at particular number.

Starting today, eShares is charging just $25 a month for its own wholly transparent 409A service.

TC: There’s so much confusion about 409A valuations, including how they compare with a company’s fair market value.

HW: In theory, and arguably in practice, a 409A valuation tends to run at discount of 25 percent to the preferred shares.

TC: Why do you think confusion around 409A valuations has persisted for so long?

Now we’ve built valuation models into eShares so that we can generate through our own platform, meaning we can significantly reduce costs.

It’s our name on the report, so yes, we’d be taking the risk, as would any 409A valuation company.