The way to resolve those problems is to make the penalties steeply progressive, not based on the "size of the company" but on the wealth of those beneficial own

The way to resolve those problems is to make the penalties steeply progressive, not based on the "size of the company" but on the wealth of those beneficial owners. The reason "little tech" is a misnomer is that a company with a VC firehose behind it isn't little in any meaningful sense. If Andreessen is giving you millions of dollars and you don't file your forms right, Andreessen should have to pay a large fine. If they don't like that then they can stop funding companies and then companies can succeed or fail on their own merits rather than on how well they can convince some VC people to open their wallets.