Due to the factors that surround the VC decision makers an entrepreneur must know what VC money is and is not – or should or should not be.   VC money is meant to take a company that needs a healthy portion of capital in order to grow very large very fast.  For instance: a typical VC worth tech company is one that has $2 million or more in revenue, notable customers purchasing the product or service, the market the company is competing in or living in is very large, like $1 billion (if you captured the entire market you would bring in $1 billion in annual revenue) and the entrepreneur wants to grow quickly so it can get large enough to fight off inevitable competition (if you think there is no competition looming in the shadows you are wrong). 

Hence, an entrepreneur thinking about taking VC money must have the mind set: if I received $5 million today and gave up 50% of my company (maybe 75% or more before the end) and this money and the individuals that invested in me helped my company grow from $2 million in sales to $45 million in sales, my remaining 50% or 25% is worth more than if I did not take VC money and grew my company slowly and was eventually pushed out by a bigger provider.  An entrepreneur must realize that a $45 million annual revenue company can battle other larger companies for customers and can be an attractive acquisition target or IPO candidate where such a company can be worth 3x revenue.  But a small $2 - $8 million company cannot battle is not often attractive and might not demand large multiples.  There is nothing wrong with a small company and $2 million in revenue is great but if you want VC money you have to look at your business and growth in a particular way.