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LARP offers circular revenue recognition platform for startups

Hacker News •
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LARP provides a web‑based service that lets early‑stage founders create matched revenue loops without moving cash. The platform pairs two companies, each agrees on a monetary figure, and records a wire transfer that is immediately reversed, generating two revenue entries while net cash flow remains zero. The system automates journal entry creation via a single API endpoint, returning a settlement record that shows recognized revenue for both parties and a net capital movement of $0.

The service is marketed to finance teams seeking faster close cycles; users report accelerated quarter‑end closes and apparent ARR growth despite unchanged cash balances. LARP claims SOC 2 Type II compliance, annual audits, and a median recognition latency of 400 ms. Over 400 finance and accounting groups, including Northbank and Cadenza Systems, are listed as customers.

LARP positions the model as legally distinct from prohibited round‑trip trading, asserting that each agreement must specify genuine deliverables under ASC 606. Critics warn the practice can inflate revenue metrics without economic substance. The platform is free, monetized only through optional tips, and does not provide legal or tax advice.