SaaS startups that ignored VC advice to cut sales and marketing were better off this year

Image Credits: Andriy Onufriyenko (opens in a new window) / Getty Images

Venture-backed startups have had to make a lot of spending cuts this year in order to live up to their high valuations. Many startups seem to be getting the wrong advice when it comes to where to downsize, according to data from Capchase.

More than 500 software-as-a-service (SaaS) companies were examined by Capchase in a number of areas, including revenue, runway and growth. It was found that companies that didn't cut spending on sales and marketing were in a better financial position than those that did.

The co-founder and CEO of Capchase said he was surprised by the finding because it didn't line up with the advice he was getting from his portfolio companies.

More on that later, but the results do align with what Capchase found this year.