Avi Eyal: Inflated contracted ARR is just 'community-adjusted EBITDA'
Avi Eyal · Avi Eyal: Making $2.3BN on Monday, Stripe & PillPack from Entrée Capital MP | E1173 · 20VC with Harry Stebbings · Jul 3, 2024 · at 1:04:17
Avi Eyal is Managing Partner at Entrée Capital. Host Harry Stebbings asked him to name the biggest piece of bad advice or metric hype in tech.
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“Contracted ARR. Folks tell you how they've signed a client, a customer, which has given them, like, 50 users, or, you know, or 50 deals, but that customer represents potentially 500,000 deals, or it represents 20,000 users, or something like that, and so they write down the contracted ARR, here's the sum total of all those users. It's just another community-adjusted EBITDA.”
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