AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
The Burn Multiple Is Very Short Term in Some Ways
The burn multiple is very short term in some ways. Am I going to generate a dollar of incremental ARR? Yeah. And that depends on whatever you're worth margin at that point in time, depending on sort of the other unit economics are. But on an incremental basis it's really great to look at on a kind of slightly longer time horizon. Because one of the key things and we've done it a couple of times and we've regretted it is everybody every startup in the world has come up with a budget or an annual plan or something. Every budget I've ever seen is a hockey stick. For the next two quarters we're only going to grow like 10% a quarter.