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The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch cover image

20VC: Why We Are in a Bubble & Now is Frothier Than 2021 | Why $1M ARR is a BS Milestone for Series A | Why Seed Pricing is Rational & Large Seed Rounds Have Less Risk | Why Many AI Apps Have BS Revenue & Are Not Sustainable with Saam Motamedi @ Greylock

The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

NOTE

Focus on Long-Term Growth, Not Just Current ARR

The emphasis on current Annual Recurring Revenue (ARR) as a primary filtering mechanism for evaluating Series A companies is questioned. While many investors use ARR to screen potential investments, focusing solely on this metric can be misleading. To achieve success in the long term, investors should consider the potential for companies to scale well beyond initial ARR figures, aiming for hundreds of millions in ARR to become a successful public company. Relying solely on early ARR numbers can overlook the potential for companies to grow significantly or the presence of a standout founder, leading to missed investment opportunities.

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