Venture capitalists have a friend in the freshman congressman from upstate New York,  Rep. Scott Murphy, D-Glens Falls.

A former VC himself, Murphy is getting an earful from investors who complain about onerous federal laws that hamper business.  Like immigrant-run U.S. startups stymied because of  the cost of getting H1 visas. Or an unwillingness by NYSE Euronext to hold an annual issuers’ meeting in the United States because so many foreign CEOs do not hold U.S. visas.

Murphy, 39,  won Kirsten Gillibrand’s Congressional district after she was appointed to fill the Senate seat being vacated by incoming Secretary of State Hillary Clinton.  A newcomer to politics, Murphy spoke to New York VCs during a breakfast session at Alan Patricof’s new firm, Greycroft Partners.

While there were some lighter moments, such as one attendee misnaming the employee-sponsored H1B visa the “H1N1 visa,” most of the concerns voiced by VCs surrounding legislation that could thrust regulation on venture firms.

“It’s a ridiculously broken system,” Murphy said of the likelihood of enacting any meaningful immigration reform anytime soon.

Murphy acknowledged lobby efforts by the National Venture Capital Association to keep VCs from being caught in the same net as high-interest payday banks, hedge funds and the mortgage broker industry.

Other issues clearly giving VCs agita were proposed taxation of carried interest and the refusal of regional banks to make loans to small businesses — even to those with positive cash flow.

On a bright note, Murphy characterized Washington as having “strong brain power,” rather than a bureaucratic malaise.

He also said there is strong support for elimination of capital gains taxes for startups, along with other programs friendly to the “innovation economy.”

“It’s in our genes,” he said of the entrepreneurism of Americans, pointing out the adventurous spirit of  ancestors who opted to travel by boat to the new world.