External capital(the current VC kind) is not essential to entrepreneurship, it is a tool for defining/researching market capacity more quickly. The catch is t

External capital(the current VC kind) is not essential to entrepreneurship, it is a tool for defining/researching market capacity more quickly. The catch is that market capacity is something that both investors and entrepreneurs are pretty poor at predicting, especially at scale. That detail can be seen in the difference between lenders and investors, amount wise. In that lenders are more risk averse, generally, with regards to market capacity.