Yesterday when I attended a conference organized by a renowned Venture Capital firm it appeared to me that the speakers are very good marketing folks! After all money with VCs is pooled from other big firms or sometimes individuals too, and they have the pressure of investing the amount. Quiet obvious VCs are answerable to those from where they gathered money, just as the company they invested in is answerable to the VCs.
If VCs say no to you do not misunderstand that your product has no future. They look for investing in companies which give them high return on investment- at least twice of what they've invested. For an entrepreneur who wants a limited growth, do not look for opening IPOs few years down the line better approach angels. 'limited' in case of 'limited growth' may not necessarily mean you are incapable of managing bigger business. You might want growth of your company keeping your basics intact.
Entrepreneurs who have already undergone these rounds of funding experience that VCs dictate the terms of company. This is done under their claims that they've global recognition, better contacts and greater experience in promoting the business. But there is no hard and fast rule about what all decisions vest on the VC. It is all a matter of negotiation!