Carta 409A vs Independent Firms: What Actually Differs
Carta is the dominant player in startup cap table software, and they leverage that position to offer 409A valuations at a significant premium. Many founders pay Carta's higher price assuming it means higher quality. It does not.
The Numbers
| Carta | Independent Firms (like us) | |
|---|---|---|
| Pre-Seed price | ~$2,000+ | $1,099 |
| Seed price | ~$2,500+ | $1,299 |
| Series A price | ~$3,500–$5,000 | $2,499 |
| Series B price | ~$5,000–$6,000 | $3,499 |
| Turnaround | 7–21 days | 5–14 days |
| IRS safe harbor | Yes | Yes |
| Analyst credentials | CVA/ABV | CVA/ABV |
| Auditor support | Yes | Yes |
| Revisions | Limited | Unlimited |
Why Carta Charges More?
Carta's pricing reflects several things that have nothing to do with your 409A quality:
- Brand premium — Carta is the dominant cap table platform and charges accordingly
- Sales team overhead — Carta has a large enterprise sales organisation
- Platform bundling — Carta often bundles 409A with cap table management subscriptions
- Annual price increases — Carta has raised prices significantly in recent years
What Is the Same?
The IRS does not care which firm produces your 409A. What it cares about is:
- Was it prepared by an independent qualified appraiser?
- Did it use accepted valuation methodologies (DCF, GPC, backsolve, OPM)?
- Was the methodology documented in the report?
A $1,099 409A from a qualified independent firm provides exactly the same safe harbor protection as a $4,000 409A from Carta — if both meet the three IRS criteria above.
When Carta Makes Sense?
Carta's 409A service makes sense if:
- You are already paying for Carta's cap table software and the 409A is bundled at a discount
- Your investors or board have specifically requested Carta
- You have a complex multi-entity structure that Carta's platform handles natively
When an Independent Firm Makes More Sense?
An independent firm is the better choice if:
- You use a different cap table tool (Pulley, Carta-alternatives, spreadsheet)
- You want to save $500–$2,500 without compromising quality
- You need faster turnaround
- You want unlimited revisions until your auditors are satisfied
Pricing comparison last verified __VERIFY_DATE__. Competitor pricing changes frequently and varies by plan and negotiated terms — confirm current pricing directly with any provider before making a decision. Figures cited for other providers are drawn from their publicly published pricing at the date shown.