Many small companies are “life-style” businesses which provide a good standard of living for their owners. These businesses are not generally suitable for venture capital investment.
Venture capital investors are interested in entrepreneurial businesses which can be distinguished from others by their potential for growth. These entrepreneurial businesses have the potential to grow rapidly.
Venture capital investors are only interested in companies with high growth prospects, which are managed by experienced and ambitious teams capable of converting their business proposition into a profitable enterprise.