For that you go to Softbank.

> If we taxed people sensibly and spread it around, then there would be a lot more capital available to the average person wishing to start a business.

I don't see how that would work over and beyond what we do today: have government secured funds with strings attached. Given the choice I'd take VC or PE based capital over a government backed fund.

You can't 'spread it around' without taxing more. VC/PE is cheap: it is money on which taxes have already been paid and if it does not work then it's their loss, not society's loss.

Besides that the average amount of capital required to start a company is very low these days, but still much higher than the amount at which these government funds typically kick in unless they are co-investing in a larger ticket.