Everyone here seems to reject the argument outright. I agree we need crowdsourcing, but it needs to be done right. Crowdfunding was once legal, this led to all

Everyone here seems to reject the argument outright. I agree we need crowdsourcing, but it needs to be done right. Crowdfunding was once legal, this led to all sorts of scams and lots of elderly losing their retirements. This is what led to the current SEC requirements of 1+M net worth accreditation and the 499 max investors cap. It's definitely possible to do, BUT IT IS HARD. Here are some ways YOU as the entrepreneur could be in trouble: * Think of the nightmare of having 1000+ investors in your startup. * Every unhappy investor is a potential liability. Now think of one of those investors loving your idea, pouring his life savings (Say 200K) then filing a suit in case the startup fails. * Investing is not a simple "here's $20,000K give me whatever that's worth in stock". The shares can be voting/nonvoting, privileged non/privileged etc. Will there be protection attached? * Your horrible idea could be funded. Think of startup ideas your uncle Vinny gives you, now imagine him investing in them. Smart investors shred bad ideas in minutes. * You miss out, on a lot. A startup doesn't just need money, it needs well connected investors. For example, see why Asana still needs investors even though Dustin is a billionaire: http://www.quora.com/Asana/Why-would-Dustin-Moskovitz-need-investors-if-hes-worth-over-1-billion-from-Facebook-stock http://www.quora.com/Asana/Why-would-Dustin-Moskovitz-need-i... There'a a reason the SEC was created. And the other side of the argument needs to be heard and addressed, not dismissed outright.