Hype Factor

aka Hype Ratio

A way to quantify “hype” around a company. Hype has value to the extent it creates halo effects that drive interest in the company that ultimately increase ARR [1]
A hype factor of 1-2 is the target. 2-3 is good, particularly before an IPO. A hype factor of 3-5 is not good, too much hype and too little ARR. A hype factor of 5+ is bad. 1.5 is a typical capital-to-ARR ratio on the eve of an IPO

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