David,
I read your posting with great interest and intrigue – my question is, where and how does one find that investor who has the same interest level as you do – investing in early stage startups and working through the challenges and the risks?
The software start-up that I am involved has produced a revolutionary enterprise software product that has already found a couple of well known companies as customers – so we are well beyond the power point slide stage and we’d still like to consider our first version as a prototype. We did make a pitch to a select few vc’s and we did our homework before we approached them – ie making sure they were the right fit. The most frustrating part in all this was this was that they did not get past their understanding of the space we are in, which is a very broad space indeed – IT operations. I think it would require someone to go way past their immediate experience and understand what our customers see in us and help us duplicate it - ie grow the business. Where does one find such interested parties?

It is really tough to find a venture investor who has just the right background for any investment. All you can really do is read up, figure out who you think is the best fit. And then pitch a few people until the story resonates with someone.

Good luck with it.

DAVID