I didn't mean "lifestyle business" to be a negative term and don't use it that way... ever. The opposite, actually - I think actually-sustainable small busines

I didn't mean "lifestyle business" to be a negative term and don't use it that way... ever. The opposite, actually - I think actually-sustainable small businesses are far better in general than bullshit startups. However, you specifically said you have been trying repeatedly to get VC money and have been getting turned away. VCs don't invest in lifestyle businesses because that's not how their funds work. The entire VC business model only works if they invest in companies with high risk/high growth prospects and the potential to be unicorns. To answer your question, the answer is statistics - VCs have a large history to draw from and have seen that viral companies and flash in the pan businesses either grow to massive exits or fail completely in a short time far more often than businesses like yours. On average, businesses like yours will continue a slow growth trajectory and have mediocre exits, if any exit happens at all, after the expected fund payout period has already passed. Basically, it's a drag on the fund portfolio and time/resources of the VC, so they won't invest - it's better that a company fail quickly while trying for unicorn status than it is that it chug along in sustainable small business mode for a decade. On the flip side, there is an entire industry of funding available to you that isn't available to startups with awful financials - banks love to loan money to small, sustainable businesses with decent profitability. If you need growth cash, get a small business loan.