We first founded Nanalyze as a forum where retail investors could share information on companies involved in nanotechnology. Our focus and investment methodologies have evolved significantly over time, as we expanded our coverage and analysis across nearly a dozen disruptive technology categories. One key theme to emerge from two decades of experience is the value we place on software-as-a–service (SaaS) firms. We’ve written extensively about why we place a premium on these businesses, which typically offer highly predictable revenues with high gross margins that help fuel high-growth companies. Many of the stocks in the Nanalyze Disruptive Tech Portfolio are SaaS companies.
And, as we discussed in a recent video on the best SaaS stocks, we tend to favor horizontal SaaS companies that serve different industries rather than vertical SaaS companies that specialize in a specific industry. The reason is pretty simple: a platform capable of servicing multiple industries will generally have a larger total addressable market (TAM) than one that serves a specific niche. Take the example of Snowflake (SNOW), a $50 billion cloud storage and computing company with an estimated TAM of $248 billion by 2026. Compare that to the largest life sciences SaaS company by market cap, Veeva Systems (
