Yup. I did it anyway using Sharebuilder many years ago, although that was Drip investing in existing businesses and it worked out very well for me.
Investing isn’t necessarily gambling, although all-in-all the best investments are nearly ALWAYS trading on the indexes alone. It’s hard to beat the indexes consistently.
The good thing about it is it will stimulate the economy as a whole… and failing startups will equally stimulate the economy as will successful startups.
Well, what stimulates the economy is getting the money out of bank accounts and from under mattresses and “out in the open”. Investing allows businesses to take the invested money and spend it. Spending it helps not only those working for the industries but more importantly, assists those who are subcontracted… and the suppliers… and all of the 3rd party connections…. and down the line it goes.
Banks are far more limited. Of course, should this turn out to be a dramatic failure… well, then the oligarchy will definitely carry on as usual with the divide growing greater.
But at least there’s a better chance of some fairness. As it stands, crowdfunding is unregulated as far as I know… and this will bring some regulatory power with _teeth_ into the system.
Could be better. Could be worse. Don’t know yet.
I believe it serves several functions:
a) It relieves the burden of investing from the rich and allows risk to be spread to the population
b) experience in investing? You give angel investors FAR too much credit in being able to ‘get it right’. Mutual fund managers, who are the gateway to investing portfolios in FUNCTIONING companies _get it wrong_ as much as any get it right. Startups invested by people with heavy capital fail as much as succeed. I wouldn’t buy the experience line quite so much.
It’s lowering the restrictions of accredited investors.
In theory, it was _assumed_ that people with enough income could afford to sustain the risk.
It doesn’t mean they were any better at it.
The laws started to be reformed in 2009 and this is a continuation of a series of reforms to combat the financial crisis that peaked in 2008 and they’re desparately trying to stem the tide of potential disaster.
Is it the right move? Well, money needs to flow.