Funding by friends, fools and founders

Last Saturday I went to a beer & innovation meeting with some Dutch music start-ups. Today I met some venture capitalists. Now I am wondering if and how entrepreneurs find investors and how they communicate with them. I think it's not always easy for entrepreneurs and investors to find and understand each other. Are investors mainly thinking in terms of Return on Investment (ROI)? Are entrepreneurs able to translate their message about passion and ideas into a message about ROI? Or should the investor try to understand the passion of the entrepreneur? I think both. Building a sustainable business is only possible with passion, focus, hard work and full support of your most important relations. Your investor is one of these relations. So, a good relationship between an entrepreneur and the investor is one of the informal terms & conditions for a successfull business. But, is it always necessary to find an investor? Remember: funding can be done by friends, fools and founders.