For what kind of business would soliciting private venture capital be a logical financial strategy for growth? Why?

Generally, soliciting private venture capital is a suitable financing strategy for a startup firms or early stage companies in emerging industries with high growth potential (fin tech, artificial intelligence/machine learning, bio tech, etc.). These types of firms are navigating through largely unchartered waters. As a result, their risk/reward profile reflects extreme potential upside and downside outcomes, and financing costs can be exorbitant (as venture capitalists will typically demand an outsize share of equity). More traditional financing strategies (bank loans, fixed-term debt issuance, equity issuance, etc.) are suitable for mature firms in proven industries.