Funding doesn't make a lot of sense to first time Founders. In our minds, we think, "Hey, investors want to make money, so if my startup can make money, who cares how big it gets?"
Unfortunately, that thinking overlooks one big fact: that for every one investor check out there, there are hundreds of startups competing for it.
In order to understand how investors look at one deal versus another, we first have to understand how investors look at deals in the first place.
The thinking goes that all investments are high risk, so if you're going to risk your money, you may as well make the bets that are big enough to wipe out all of your bad bets.
Actually, lots of people, just not most "traditional" investors.