Venture Capital is a very specific type of equity capital that is utilized by high-growth startups. The vast majority of businesses (over 95%!) will never take VC, because the structure of venture capital essentially mandates that it can only be used by companies that have the potential to access $500m+ markets. The reason for this is that investing in high-growth, early-stage startups is super risky - there are a million reasons why any given company might fail. Because of this, the venture capital firm is going to end up losing money on most of their investments. In order to make a profit, the VCs are relying on 1-2 of their portfolio companies hitting it big - think an Uber or Facebook. The massive returns from these companies make up for all of the money that was lost on the other 90% of the portfolio. But since it's impossible to know which startups will fail and which will succeed, every single company that gets VC money needs to have the potential to make these massive returns.