Sifted highlights a critical blind spot in venture capital: the miscategorization of impact-driven startups, particularly those serving government sectors. While AI investments dominate headlines, govtech startups reportedly offer durable revenue models and high customer loyalty, yet remain underfunded. The challenge lies in VCs' reliance on SaaS-centric metrics, which fail to capture the unique dynamics of public sector contracts. As private equity increasingly steps in, the question remains whether VCs will recalibrate their frameworks to seize these overlooked opportunities.