When I got my game company funded by VC's in 1993 it was an exception. Sounds like its still true today. The rationale was that VC's don't fund "hits-based" businesses. The feeling was that the game business had additional risk than just a software product. Not only would they be betting whether your startup could actually make and deliver the game, they were betting whether it would be a "hit" like movies, books, and other entertainment. VC's recognized that they had no "gut instinct" for cultural fads. In fact, VC's partnership agreements restricted them from funding real estate, etc. and they felt that games fell into that same hits-based category.
