High ARR multiples won't save AI startups with runaway burn, investor warns
vaibhavbetter · x · 2026-09-26
- Gokul Rajaram, Founding Partner at Marathon Management Partners, tells The Information that evaluating AI startups on revenue alone is a major risk: high ARR multiples won't save companies with runaway burn rates.
- "The ARR multiple in isolation without looking at the burn is basically irrelevant… What I want is a company that when the markets turn, they can still keep growing efficiently and they can raise a round even in a bad market."
- Takeaway: capital efficiency and downturn resilience matter more than revenue multiples.
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