Counting sales as revenue doesn't work in GAAP but do VC's care that sales and revenue are different and do they use revenue and sales interchangeably?
This is a very interesting topic. You are right that GAAP doesn't work and that more detail information is needed.
I have found this post very helpful.
https://medium.com/@DanielleMorrill/is-my-startup-burn-rate-normal-882b2bd20f02
You should also read everything on SaaS of Tom Tunguz
http://tomtunguz.com/saas-revenue-growth-rates/
Answered 9 years ago
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