ARR Is Not the Problem. The Institutional Vacuum Around It Is.

ARR Is Not the Problem. The Institutional Vacuum Around It Is.


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When Cluely’s CEO admitted to inflating ARR by 35%, the easy story was founder ethics. The harder story is institutional design — what happens when an entire ecosystem builds an investment thesis around a metric with no agreed definition and no countervailing institution incentivized to police it.

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© 2026 Chuck Eesley