Check out this article on Venture Capital.
Didn't read real close, but basically VC Money out there is remaing the same, but those currently funded companies are having a harder time exiting, so sucking up more money until exit.
Do we have too many entrepreneurs out there? I doubt that. What I think is happening is Sarbanes Oxley has made it so difficult to go public that companies will be venture backed for longer looking for buyers instead of going public when they're hot.
Sad really, one of the reasons I went to BYU for an MBA was to get do some cool company building and exiting. I understand the need for security of people's money and retirements, but I think the next president is going to have to tackle the issue of not killing off companies with too much regulation.