Jeff Bussgang has today's great post up titled Let's Play "Blame The VC."  It's something that regularly confounds VCs and entrepreneurs alike.  The punch line:

"Then, when you don't get funding, play "blame the VC".  Tell all your friends that those risk-averse idiots wouldn't know a good deal if it hit them in the face.  And especially the ones in [insert your geography here]."

Jeff does a good job - in a relatively self-deprecating way - of dissecting this endless discussion.