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In focus
For this edition, we cover:
- Why a key revenue metric may not work for AI startups
- What the editors@techinasia.com inbox is for
- Newsy bits like Indian regulators clearing foodtech giant Zomato of anti-competitive allegations
Hello reader,
It’s often hard to remember that social media doesn’t always reflect reality. But it’s important to scroll with a healthy dose of skepticism, especially on platforms that feature as much bragging as LinkedIn.
There’s one type of post that keeps popping up on my feed, and it’s hard to miss. I’m sure you’ve seen them too: breathless hype around an AI-first startup that’s scaling like crazy.
A lot of these posts include dizzying annual recurring revenue (ARR) figures that were achieved in mere months – a stark contrast to how other types of startup would need years to get the same results. It got me wondering whether it’s legit: Could so many AI startups really have huge ARR numbers?
Today’s Big Story explores this metric to see just how useful it is in assessing AI-first startups. While a big ARR number may be flashy and the company claiming it may even have some impressive traction, it’s probably not the best way to measure product-market fit.
Meanwhile, our managing editor Thu Huong Le makes the case for human-sourced story tips in today’s Spotlight. Even in the age of AI, true scoops still start with real people.
The Big Story
AI has broken the ARR startup metric
Image credit: Timmy Loen
With the rise of “tourist users” in AI firms, the reliability of annual recurring revenue is breaking down for investors.
Spotlight
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