Any metric investors weight heavily will be gamed, and he expects this cycle to expose founders' accounting creativity. Listen
Ganesan pointed to the SaaS era, when net revenue retention could be inflated by landing a $10 deal and expanding to $50 a week later rather than signing $100 up front, which turns 100% NRR into 500%. He referenced the economist's idea of the 'bezzle' rising in booms, but was unsure who coined it. He said the real filter is whether founders and investors are focused on terminal value or on markups.
“Once a metric is measured, it can be gamed. And that happens.”
Listen to the episode Episode Metrics & finance Link to this