That is slightly incorrect, at least if one takes "slightly" to mean "widly". Actually, as the blog points out, he invests 25K while the invited investors can p

That is slightly incorrect, at least if one takes "slightly" to mean "widly". Actually, as the blog points out, he invests 25K while the invited investors can pitch in up to a totla of 250K. He gets 20% of any profit off this 250k, which is 10 times his own investment. So for every point of profit on his own investment, he gets two additional point back (250K/25k x 20% = 200%). That's a nice scheme were there is no increase in risk yet there is 3x the return on investment he'd normally get. So, for a corral of startup that would net 5% on average, he'd get 15% average instead. No additional cash nor risk involved. Meanwhile, the invited get 4% instead of 5%. Would you invest in a scheme were the risk are the same but the return 20% less? Yet again, the riches get richer.