To me there is a lot of irony in investing public money into startups when most citizens cannot easily invest in startups themselves given the accredited invest

To me there is a lot of irony in investing public money into startups when most citizens cannot easily invest in startups themselves given the accredited investor capital requirements. Here's how I see the irony unfolding in broad strokes: 1) Average middle class person wants to invest some extra money in a startup, but cannot easily do it because he does not meet the SEC requirements to be an accredited investor (http://www.sec.gov/answers/accred.htm http://www.sec.gov/answers/accred.htm) 2) The State of Hawaii invests public money in startups (in this case based on cronyism -- even worse) 3) Where did that money come from? Tax revenue. Who contributes to tax revenue? The average middle class person from #1. So basically the person is investing in startups in a roundabout fashion. He just can't choose which ones he invests in and he misses out on the major upside of successful startups. Of course, if the startups fail and the state loses its money, the state will go right back to the average person for more tax revenue.