AI startups are inflating a key revenue metric to win VC attention, says this founder

Founders are blurring ARR with future contract revenue to boost headline numbers, according to Spellbook CEO Scott Stevenson.

[Source Image: Getty Images]

Thousands of AI startups are fighting for the VC funding needed to win a slice of the enterprise market. But according to Scott Stevenson, cofounder and CEO of the legal AI startup Spellbook, many are inflating their real revenue to get it. In a viral tweet on April 17, Stevenson called out these fledgling companies for perpetuating a “huge scam” in their metric........

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