NO! A 409A valuation is an essential part of a startup’s financial framework. This valuation, provided by a third-party accredited valuation provider, establishes the strike price for employees’ stock options. It is crucial to maintain a conservative 409A financial model to prevent overpricing and to ensure employees are motivated by fair stock option pricing. Founders often use the same financial models for their 409A valuation as they do for their venture capital pitches, which can lead to problems as these models are typically more aggressive and optimistic to attract investors. However, third-party 409A providers cannot discount these optimistic projections, resulting in potentially inflated valuations. Therefore, founders should develop realistic financial projections for their 409A valuations to avoid overvaluing their company and overpricing employee stock options. Use a more conservative, easier to attain set of projections for your 409A projections.