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Love these: > Introducing the hype ratio and the burn multiple. Hype Ratio = Capital Raised / Annual Recurring Revenue. Burn multiple = Net Burn / Net New AR
by gnicholas 4y ago
Love these:
> Introducing the hype ratio and the burn multiple.
Hype Ratio = Capital Raised / Annual Recurring Revenue.
Burn multiple = Net Burn / Net New ARR
If these ratios are superior to 3 then there is a problem. It’s not uncommon to see startups with a 10+ ratio these days.
- nbstme 4y agoThanks! All credits to https://twitter.com/DavidSacks https://twitter.com/DavidSacks who publishes great content.