Lemkin: Private markets irrationally ignore gross margins when applying ARR multiples

“I still feel like for startups, we're giving Revenue valuations that don't have an adjustment for different ways their comps trade in the private markets. And if ramp is in a space that's two to four X revenue at when it's public or whatever that you could look at the comps three to four, like it, see, that's the part, you know, a lot of FinTech revenue is lower. It's lower margin or we're at the public markets value at lower. And that's the part I don't get in, even in my own portfolio, when I see valuations, That value 80% gross margin products the same as 20, or 30, or 40, and that remains a mystery to me in the private markets, right? Where everyone gets the same ARR valuations, even if the quality of revenue, or even if the public comps are different, right?”

quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →