We're building a CRM for local governments (http://romulusapp.com) and have absolutely found this to be the case. Investors are not only terrified by government, but consistently talk about things like blockchains and GoPro + drones as things they are more interested in.

I'm all for experimentation, but it has been surreal to see the discount for solving an actual problem despite a massive market opportunity, little competition, and clear customer need + willingness to pay.