There is....there are investors who don't require 100x returns. It's just harder to find them, they're usually more risk averse, and you'll need a way to return their money that doesn't necessarily include an IPO.
Another thing to consider, is that focusing on the 'middle road' does not necessarily preclude a company from swinging for the fences, it merely sets the incentives such that getting to profitability sooner is advantageous. They do this by encouraging dividends as a form of compensation, but the company still has the option of going the VC route.
So if anything, I think this structure is the best of both worlds. If a company can take ~$100k in seed for ~10% in equity and turn that into a small business worth $10M, that is a 10x return. But if it looks like they are on to something bigger, they can raise another round and keep grinding.