The Information(@theinformation):High ARR multiples won't save an AI startup with runaway burn rates. Gokul Rajaram @gokulr, Founding Partner at Marathon Management Partners, explains why evaluating companies on revenue alone is a major risk: "The ARR multiple in isolation without looking at the burn is basically irrelevant…What I want is a company that when the markets turn, they can still keep growing efficiently and they can raise a round even in a bad market."

The Information

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The Information@theinformation

2026.09.25 00:00

High ARR multiples won't save an AI startup with runaway burn rates. Gokul Rajaram @gokulr, Founding Partner at Marathon Management Partners, explains why evaluating companies on revenue alone is a major risk: "The ARR multiple in isolation without looking at the burn is basically irrelevant…What I want is a company that when the markets turn, they can still keep growing efficiently and they can raise a round even in a bad market."