Because they are ignorant fools.
It has been said that editors get a bad rap from authors, because they can’t see good stuff in front of them and they piss on talent.
They have nothing on venture capitalists.
In my day, I’ve gone to VCs with four major business proposals. Now, my track record is certainly not undistinguished– after all, my company conducted the first e-commerce transaction over the Internet. There are those who believe that me and mine may have also invented the internet shopping cart. We can also mention the first e-book publisher on the net, and I ran a heck of a lot longer than companies founded and funded by traditional publishers.
And what does this get me? Bupkis. Can’t even get my phone calls returned.