Couple of things that are not correct in the article:

(1) a $50,000 fee for a valuation is crazy- early stage companies pay less than 1/10th that.

(2) companies typically do not get a valuation done more than once per year. the article makes it sound like you get a new one every time you issue options, they actually have a shelf life of one-year, unless there is a new financing or other event that requires a new report to be obtained.

Not saying its a good system (it's not), just odd that the NYT would get some basic facts wrong.