There's a subtle reason why VCs will avoid certain kinds of businesses that is not clear until you are inside the sausage factory, which is that your LPs (inves

There's a subtle reason why VCs will avoid certain kinds of businesses that is not clear until you are inside the sausage factory, which is that your LPs (investors) are sensitive to bad perception and publicity. Specifically your sponsor within an LP such as an endowment or foundation reports to an Investment Committee which is typically extremely conservative. In the worst case, you could put your sponsor's career at risk in their own profession.