The US is by far the most entrepreneurial country in the world. I read somewhere its current status is mostly due to the healthy Venture Capital eco-system.
The core problems with the Venture Capital, IMHO, is that investment decisions are not made based on product merit. Sure, they won't invest in a very stupid idea, but they will invest in a mediocre idea if the "team" is a proven team, but that is not what happened to Yahoo, eBay, Google or YouTube. Completely unproven teams.
Just to be clear, VCs decision are very complex, but most will tell you that the experienced team trumps all other criterias, then comes other factors like market, opportunity, product, etc.
I just read (through Jeff Nolan on Venture Chronicles) that a VC from Boston (Charles River Ventures) is creating a new deal flow called QuickStart to make it easier for companies to get Convertible Debt (a.k.a. Bridge Loan) to get started. Fantastic. (Note to self: Send Sampa's business plan).
Here is the deal, nearly 100% of VCs will tell you they do Seed Investment -- it's a lie! Nearly 100% of VCs will tell you they can do Convertible Debt -- Oops, another lie.
Ask your favorite VC when was the last time they did a $250K Convertible Debt investment. Remember to exclude the one's that were done by EIRs (Entrepreneurs in Residence) because that is just you giving your son an allowance and telling people that you give money to the needy every week.
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(through Jeff Nolan on 
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October, 2007