The big payoff for the entrepreneur and venture capitalist is when the firm is closely held by its founders.

Entrepreneur

An individual who creates, organizes, and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Venture Capitalist

An investor who provides capital to startups or small companies looking to expand, in exchange for equity stakes.

Closely Held

Closely held companies are usually small, owned by a small number of people, typically managers and their common shares are not actively traded.