How Secondaries Impact 409A Valuations

As noted in Carta’s Liquidity in 2021 report, the movement toward private market liquidity rose sharply against a backdrop of high U.S. venture capital activity. This trend resulted in Carta executing 129 secondary liquidity events in 2021 – a 4x growth in transactions YoY! And with that momentum, we received an influx in questions around how secondary liquidity events impact a company’s 409A valuation.

Join us on March 3, 2022, 2:00pm EST / 11:00am PST to hear Jason Raziano, Head of Origination at Carta Liquidity, and Chad Willbur, Vice President of Valuation Services at Carta, discuss the basics of secondary liquidity events and 409A valuations and then answer these commonly asked questions and more:  

• Why do secondary liquidity transactions count as a material event? 
• How do secondaries impact a private company’s 409A filing?
• How many secondary liquidity events can occur before there’s a material impact to my 409A?

A brief Q&A session will follow. 

About Carta Liquidity’s 2022 Fireside Chat Series:

Carta Liquidity’s Fireside Chat Series is an educational series focused on highlighting the thought leadership and market insights of the Carta Liquidity team. Each 30-minute live session will touch on hot topics impacting companies, investors and employees within the private market space, followed by a Q&A session.

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