I think SaaS companies are massively under-valued because most investors still do not understand how powerful a low churn recurring revenue stream is for a) predictable sales process/outcomes b) self-funding growth c) ability to take risk on new products because you can test and sell to existing customers.
I think there is a very good chance that VCs will miss HUNDREDS of $100M+ SaaS opportunities due to this risk aversion over the next 1-7 years. If I were to start a fund I would focus 100% on this asymmetry.
"because most investors still do not understand how powerful a low churn recurring revenue stream is"
Isn't this a problem then with educated them and selling them? If it fits with the rest of your strategy maybe you could do something in this area. [1]
"If I were to start a fund I would focus 100% on this asymmetry."
Are you sure that it is a lack of knowledge and understanding or there is some other reason that makes what they do the low hanging fruit?
Along the lines of [1] why don't you package and present the data and charge for it to make this case then?
I've seen this happen in other businesses (real estate investment) but that was some time ago and only with certain types of properties when it was done.
[1] Sorry to be so quick to give you something else to do. But maybe there is opportunity here that would justify the effort.
I think there is a very good chance that VCs will miss HUNDREDS of $100M+ SaaS opportunities due to this risk aversion over the next 1-7 years. If I were to start a fund I would focus 100% on this asymmetry.