HOW TO SPOT ERR

Summary from the TLDR Founders newsletter

Many SaaS companies think they have stable recurring revenue when they actually have experimental revenue that could vanish overnight. McDonald's canceling its AI drive-thru instantly killed vendor revenue - a perfect example of ERR (Experimental Run Rate) vs real ARR. The warning signs are everywhere and mistaking ERR for ARR leads to overhiring, burning cash, and fundraising at valuations you can't grow into.