There's a lot of money floating in the world today. Tons and tons of money. Silicon Valley only get's a small portion of it. The rest of the world gets an even smaller portion of what Silicon Valley gets.
Read Point 14 & 15 on this article: http://www.paulgraham.com/really.html
14. Investors Are Clueless 15. You May Have to Play Games
Points 14 & 15 should not exist. How can we eliminate that? How can we make it so that the people who know how to invest are the ones who have the funds?