ARR (Annual Recurring Revenue)
The annualised value of a company’s recurring revenue (MRR × 12).
ARR expresses recurring revenue on a yearly basis and is the headline metric investors use to size SaaS businesses. It reflects scale and is often the basis for valuation multiples at later stages.
Examples
£10k MRR equals £120k ARR. — A startup crosses £1m ARR ahead of its Series A.
How it relates to The Startup Foundry
Demonstrating growing ARR strengthens your investability score and the story you tell the Foundry’s investor network.