HYPE
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
Primary
[1] Retrieved May 21, 2021, from https://kellblog.com/2016/03/22/introducing-a-new-saas-metric-the-hype-factor/