> The problem is that when they fail, their clients lose money, and they don't. This isn't really a problem - they only take accredited investors because of th

> The problem is that when they fail, their clients lose money, and they don't. This isn't really a problem - they only take accredited investors because of this risk. VCs also lose money when startups fail, but they don't ask the founders and employees to pony up past salaries. Understanding of the risk of failure with no recourse is a prerequisite to investing.