AI Startup ARR Is Inflated 3–5x — Who Fills the Gap?

The Problem

AI startups routinely conflate CARR (Contracted ARR) with actual ARR, or include customers not yet onboarded — inflating metrics across the industry.

Why Now

VCs are applying 10–50x valuation multiples to AI startups at the exact moment ARR definitions are not standardized. Investors and founders are reading the same number differently.

Recommended Talent

Someone who understands both SaaS financial modeling and VC due diligence processes.