VC relies on you growing enough to attract bigger investors in the future at a higher valuation, including going public. PE bets on you having a really reliable cash flow that they could strap a bunch of debt on to extract the cash in a tax-favored government-subsidized fashion.
They’re sort of the inverse in the stereotypical PE acquisition. VCs inject money into the business in the hopes of future growth. PEs then extract that money by maximizing short term profits at the cost of the company shrinking.