Depends strongly on the area, with probably more focus than in the U.S. on whether the company will produce either scientific or cultural innovation in addition to profits, because many of the funds come from nonprofits or state initiatives. There is a lot of seed funding for companies that can show they'll produce a scientific impact, through either state-funded "research commercialization" grants (where a company will propose to turn academic research into a product), or through quasi-charitable private initiatives like http://www.novo.dk/composite-364.htm
There is also a ton of arts funding, much larger than in the U.S. on a per-capita basis, to the extent that it bleeds over into funding tech companies too. For example, Playdead (makers of Limbo) got their initial ~$150k in funding from the Danish Film Institute, and I know two founders with seed funding from the Nordic Game Program.
The western European model seems great if you want a life safely doing what has always been done.
And the American model seems great if you're part of the small percentage who are not merely differently but excellently different. Further problem: if everyone's special, no-one is.
The western European model seems great if you want a life safely doing what has always been done.