MAKING SENSE OF REVENUE METRICS FOR FUNDRAISING

Summary from the TLDR Founders newsletter

This breakdown clarifies how to categorize and present your numbers when you have a blend of annual contracts, monthly contracts, and transaction fees. Key metrics like CARR (Contracted ARR), live ARR, and trailing-3-month transaction revenue all matter. Keep your reporting straightforward and honest—don't fold unpredictable transaction-based income into ARR, and don't hype proof-of-concepts as if they're guaranteed renewals. Investors appreciate clarity on which revenue is stable and which is volatile, so highlight each source distinctly and show trends rather than a single snapshot.