Venture Investing In A Flat World

Today at the IdeaFestival I sat in a session called "Venture Investing in a Flat World." The idea was to take Tom Friedman's ideas about the flattening of the world and see how they apply to venture investing. A couple of good questions that are worth thinking about.

1. Few U.S. vc firms are currently investing overseas. Can the U.S. compete without changing that?

2. With barriers to entry constantly lowering, due to this "flattening of the world," where will successful companies of the future find their competitive advantages?