VC is generally designed for big bets and big payoffs (invest in 10 risky bets in the hope that 1 pays off to cover your losses on the other 9). Less risky ventures with smaller payoffs take longer to grow, and don&#x27;t satisfy the payoff requirements of the VC model.<p>That doesn&#x27;t mean they&#x27;re bad companies, but there&#x27;s definitely a funding gap for the type of company that will require $3M in investment up front and be worth $10M in 5 years. That&#x27;s still a great return, but right now it&#x27;s the domain of private equity.