They have venture-backed startups They’ve had to cut huge costs this year to try to live up to expectations, reduce burn rates, or both. But new data from fintech Capchase shows that many startups — especially venture-backed ones — seem to be getting the wrong advice on where to cut back.
Capchase, which lends equity capital to SaaS startups, tracked the success of more than 500 SaaS startups across multiple sectors, including revenue, runway and growth between August and December 2021 and growth between April and August 2022. The market that did not reduce the cost of sales and marketing. They were in a better financial and growth position now than they were when the decline began in 2022.
Miguel Fernandez, founder and CEO of Capchase, was initially surprised by this finding because it doesn’t match the advice many VCs give to their portfolio companies — at least on Twitter.
However, the results are even greater after Capchase also found that most of the bootstrapped software companies are doing better than the VC-backed ones this year.
