AI Harness' ARR Multiples | Tomasz Tunguz
Three AI companies crossed $100m ARR within nine months & were valued at 50x, 56x & 100x revenue. Growth rate does not explain the gap: the fastest grower priced near the bottom. The premium tracks category position instead.
In short : Three AI companies crossed $100m ARR within nine months & were valued at 50x, 56x & 100x revenue. Growth rate does not explain the gap: the fastest grower priced near the bottom. The premium tracks category position instead. How does the market value an AI harness? We now have enough data points to draw some initial conclusions. Harvey, Legora & Sierra each announced crossing $100m in annual recurring revenue within nine months of each other, & Ramp & Decagon bracket them at $1.4b & $35m.1 The answer varies between 25-125x current ARR at scale, with multiples increasing…
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