--- title: "TechCrunch: What is a 409-A? | EquityZen" description: Why tech companies might want a lower valuation and what this means for startup employees. image: https://blog.equityzen.com/hubfs/TechCrunch-89decb68977f72be-1.png --- [![EquityZen](https://blog.equityzen.com/hubfs/equityzen-logo.svg "EquityZen")](https://equityzen.com/) - [Investments](https://equityzen.com/explore/) - [Explore](https://equityzen.com/explore-private-market/) - How it Works - [Investors](https://equityzen.com/investor/) - [Shareholders](https://equityzen.com/shareholder/) - [Institutions](https://equityzen.com/institutions/) - [Issuers](https://equityzen.com/issuers/) - [Financial Advisors](https://equityzen.com/financial-advisors/) - [Insights](https://blog.equityzen.com/) - [Login](https://equityzen.com/accounts/login/) - [Sign Up](https://equityzen.com/accounts/register/) [Back to insights](https://blog.equityzen.com) [In the News](https://blog.equityzen.com/tag/in-the-news) # TechCrunch: What is a 409-A? ![EquityZen](https://blog.equityzen.com/hs-fs/hubfs/image%20(5).png?width=96&height=96&name=image%20(5).png) Written by EquityZen • July 20, 2022 • 0 min read ![TechCrunch: What is a 409-A?](https://blog.equityzen.com/hs-fs/hubfs/TechCrunch-89decb68977f72be-1.png?width=1318&height=736&name=TechCrunch-89decb68977f72be-1.png) In this article Like this article? EquityZen's Phil Haslett shares why tech companies might want a lower valuation and what this means for startup employees in [TechCrunch](https://techcrunch.com/2022/07/20/what-is-409a-valuation-stripe-instacart/). Join Investors and Shareholders Exploring the Private Markets Today [![Get Started](https://no-cache.hubspot.com/cta/default/20754585/8e691282-6ef2-4809-87ba-5604efc0edbe.png)](https://cta-redirect.hubspot.com/cta/redirect/20754585/8e691282-6ef2-4809-87ba-5604efc0edbe) ### Related Articles ![Fox Business: 'Zombie stocks' exacerbating the IPO drought](https://blog.equityzen.com/hs-fs/hubfs/Screen%20Shot%202023-03-23%20at%2010.52.40%20AM.png?width=812&height=446&name=Screen%20Shot%202023-03-23%20at%2010.52.40%20AM.png) ##### Fox Business: 'Zombie stocks' exacerbating the IPO drought What's cooling the IPO market? Hear thoughts from EquityZen's Phil Haslett on 'The Claman Countdown'... 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