I assume you are referring to the way the government is constraining who they qualify as an 'investor' (someone who has made an investments of at least $50,000

I assume you are referring to the way the government is constraining who they qualify as an 'investor' (someone who has made an investments of at least $50,000 every year for the past 3 years)? It does make sense to have some clause like that to avoid the loophole you mentioned. It is still orthogonal to what I am saying though, which is that once an entrepreneur has raised the money from a qualified investor for a legitimate startup, they should essentially get a permanent residency permit.