You bring unique expertise to your clients that noone else can match. In these VC convos and elsewhere, consider focusing on your strengths rather than pointing out how others are reaping rewards for your work. The fact that others get $$ for wrapping your work and advertising it can be viewed as a positive thing; it's a contribution to society even if you don't get a cut of every transaction. Of course you want some cut, and more would help you grow. You yourself probably have a better bead on avenues where open source or VLC is likely to succeed than anyone.

VC funding, I hear, is more about the people than the ideas. It can also be cliquish. It might be worth asking a friend who's received such funding for some constructive criticism on your approach. If you don't have one, make one.

I commend you for your personal ambition, but sometimes getting a different perspective can be a good thing. Your complaint basically is that you are having a hard time getting a VC investment for your (otherwise perfectly fine) running business that feeds a lot of mouths and - while not making a fortune - makes money.

On a certain level that's akin to a tenured professor with a perfectly fine University career complaining he has little chance of ever being awarded the Nobel Prize.

Ambition is great, but do not let it cloud your sense of pride in your achievements. If you're not content being 90th percentile, what gives you confidence you'd be happier being 99.9th percentile?