Yes, you've come across the core criticism of the VC business model. They fund 500 startups in the hopes that one of them goes big. Not big, gigantic! Humonguous! The next Google! Facebook! Dropbox! They need such a huge return for their business model to work (do you know how expensive it is to fund 500 pie-in-the-sky startups?)
With that in mind, if as a founder you're happy to settle for mid-size, you're going to get into headlong conflict with VCs who've funded you (and thus own majority shares of the company), because you're failing them according to their model.
You may be interested in jwz's and idlewords's comments, who frequently decry this model.
With that in mind, if as a founder you're happy to settle for mid-size, you're going to get into headlong conflict with VCs who've funded you (and thus own majority shares of the company), because you're failing them according to their model.
You may be interested in jwz's and idlewords's comments, who frequently decry this model.