With respect, many startups simply persist, some profitably, some at breakeven. Many founders would rather be in control than wealthy (or working for someone else). Doubtless you screen out folks who favor control over wealth so you don't see them. It's taken me a long time to understand that while every founder "wants to grow" many don't want to grow beyond where they can still be in charge.
Many startups become small businesses. Some are called "the living dead" operating at break-even. There are a variety of reasons. One can be that the founders are comfortable with the current size. See http://www.investorhome.com/vc.htm for an example breakdown of outcomes from VC investment:
"VC firms typically manage multiple funds formed over intervals of several years. Funds are illiquid but as companies in the portfolio go public or are sold, the investors realize their returns. Funds typically consist of limited partnerships invested in a number of companies. A general rule for the breakdown of returns among VC company investments is 40% will be complete losses, 30% will be "living dead," with the remaining 30% generating substantial returns on the original investment. The big winners yield 10 or more times the original investment."
