Gah, I thought ARR was Annual Run Rate (Burn Rate), not Revenue. I meant to say they’ll use their newfound capital much faster than they increase revenue (which they should! that’s the whole point of seeking funding). And then, for most, the revenue won’t actually increase enough and they go bankrupt.
My main point was that when it turns, it turns completely. Every funding source is projecting the future, not looking at the current situation. A negative direction is zero-value.
I got confused reading this a few times, because increasing your annual recurring revenue by an order of magnitude IS growth (most of the time).
I think this is supposed to say something like increasing burn rate by an order of magnitude.
Gah, I thought ARR was Annual Run Rate (Burn Rate), not Revenue. I meant to say they’ll use their newfound capital much faster than they increase revenue (which they should! that’s the whole point of seeking funding). And then, for most, the revenue won’t actually increase enough and they go bankrupt.
My main point was that when it turns, it turns completely. Every funding source is projecting the future, not looking at the current situation. A negative direction is zero-value.