Market Conditions and Their Impact on 409A Startup Valuation

Market conditions heavily influence 409A startup valuations by shaping investor sentiment, comparable company data, and risk assessments. In strong markets, higher demand and favorable funding trends can boost fair market value. In downturns, reduced capital availability, lower comparables, and elevated risk perceptions typically decrease valuations, making assumptions more conservative and scrutiny more rigorous.

https://medium.com/@409avaluations/market-conditions-and-their-impact-on-409a-startup-valuation-72192839d068