[loceng]

Another thought I had: they don't want to help you succeed in small increments because then you're 1) not likely to need their help any longer (they don't have you on a metaphorical leash), and 2) the more successful you are the more leverage you have in negotiating and could find other suitors to fund you at better rates.

[EGreg]

Well, I think there are different kinds of VCs. And anyway, as usual there is a way to address this... they can just get options (but not obligations) to have preferential rights in follow-on stuff, such as right of first refusal.