AI startups are inflating a key revenue metric to win VC attention, says this founder (opens in new tab)

Founders are blurring ARR with future contract revenue to boost headline numbers, according to Spellbook CEO Scott Stevenson. Thousands of AI startups are fighting for the VC funding needed to win a slice of the enterprise market. But, according to Scott Stevenson, founder and CEO of the legal AI startup Spellbook, many are inflating their real revenues to get it. In an viral tweet earlier this week, Stevenson called out these fledgling companies for perpetuating a “huge scam” in their metric...