Tootfinder

VCs say some AI startups, under pressure to show rapid ARR growth, are using questionable accounting practices like counting one-time deals as recurring revenue (Allie Garfinkle/Fortune)
https://fortune.com/2025/09/28/how-is-arr-calculated-startups-venture/

‘There’s so much pressure to be the company that went from zero to $100 million in X days’: Inside the sketchy world of ARR and inflated AI startup accounting
Annual recurring revenue is the metric VCs and founders love to tout. But skeptics think these overblown numbers are helping fuel a bubble.