"VCs" is not some catch-all well-defined term. To say that all venture capitalists "require" you to be a C Corp is incorrect and further reinforces the very issue I'm trying to address here. There are lots of different types of venture capitalists. From large funds, to institutional investors, to individuals, and everything in between.

Some of them require C Corps. Some of them require S Corps. Some of them require a specific C Corp like one in Delaware. Some of them are just fine and dandy for LLCs. Some prefer LLCs. For all cases[1]: there are appropriate methods and paperwork to ensure parties can come to agreements.

Continuing to add comments to this site with phrases that characterize VCs as being a single entity is confusing and not helpful.

New founders have a lot to worry about. Whether they created the right type of company or not, is so far removed from initial worries and so often easily taken care of at later dates. I don't think it's helpful at all to continue to try and convince them that there is a wrong or right way to do things.

[1] - I dont have any examples where a business owner and an investor couldn't come to an agreement when both parties wanted to work together.

There's a reason this Atlas thing supports Delaware C Corps and only Delaware C Corps. I agree that founders have a lot to worry about. So just get the Delaware C Corp and move on.