Because taking VC money let's you defer the revenue question. And by deferring it, you then have to bait-and-switch the users.
Let me be clear. It's OK to get startup money. Businesses need capital to get going. But revenue should be the original business plan.
In other words, who is paying for this site, and how? Ello ruled out advertising and data sale - that's fine, but that leaves subscriptions, donations, premium features, whatever.
For a "regular" business, each wants to become sustainable, its important to become profitable ASAP. The team is focused on revenue, keeping costs down and so on. Once it can pay expenses and salaries it can run forever.
The obvious revenue here is subscriptions. Income rises with expenses. But of course if you charge you'll grow slowly. So you start free, which means customers will rebel later.
(Anyone see parallels to Open Source companies here?)
VC money allows you to kick this can down the road. Small angel investment? Sure, no problem. You still have majority control. But if you are using that money to pay salaries, then it'll quickly run out. If you don't have enough revenue, you could just close up, but you dont, you go get a series A. Then B. Then C and so on.
The implication is you are selling equity. One day that investor equity exceeds 25%. A round or two later it's over 50%. You've lost control. (And I'm assuming all the founders are in agreement all the time - in reality one wants to cash out, and joins the investors camp well before the 50% is reached.)
So, you can grow slowly, and sustainably. Or you can take money, grow fast, and "hope".
But make no mistake, when you sell -equity- you are selling control. You are selling your right to dictate "principles". That is -what- you are selling-.
Since you are selling to people who are in it for the financial return, the end result is like night following day; inescapable.
If you want to build a business on principles, not profit, you HAVE to answer the revenue question first.
From Wikipedia:
"Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services)."
You may not be able to find investments as easily though.
Or you may have folk throwing money at you. What do I know...