Clements: Extrapolating temporary ARR spikes as product-market fit is a trap
Miles Clements · "Cursor is Dead" is Total BS: Here is Why | Miles Clements · 20VC with Harry Stebbings · Mar 9, 2026 · at 24:24
Miles Clements, growth partner at Accel, shares past investing mistakes regarding short-term ARR spikes when evaluating startup traction.
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“There have been investments where, you know, a company went from, they had a million dollars of ARR, and then in the period that you know, before they fundraise, they had like a four million dollar quarter, and it's like, they've got it. Like the product market fit snapped. Like they, this is it. This is the time to, Forward invest and you can extrapolate these trends. And then it turns out sometimes they just had an anomaly quarter and I have fallen into that trap before.”
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