By the way, I'm curious, how did the company you work(ed?) for in Missoula, MT, get started? I'm always interested when I come across software companies in non-megalopolises.
The three founders live here, and wanted to build a software company. They worked hard to make something people wanted, and raised money from the three Fs (friends, family, and fools). They applied to YC on a lark, actually got in, moved to Mountain View for 3 months, learned a ton and made good connections.
After gaining traction in the market it was possible to raise from angels and then VCs.
I believe you can build and sell software from anywhere if you have the drive and find a way to solve problems that people are willing to pay money to solve.