Yes! If you were raising at 100x ARR it means that $1 of ARR generated $100 of market value. In that sense, it made sense to burn $100 to acquire $1 of revenue.

Yes! If you were raising at 100x ARR it means that $1 of ARR generated $100 of market value. In that sense, it made sense to burn $100 to acquire $1 of revenue. Of course, when the reversion to the mean hit and companies trade at 7x ARR, it doesn't make sense to spend that much. Unfortunately, most startups won't be able to adapt their expenses to this new environment.