That's good point, but if that's the effect, the cause isn't inefficient firms, it's the regulation that forbids "regular people" from investing in startups. h

That's good point, but if that's the effect, the cause isn't inefficient firms, it's the regulation that forbids "regular people" from investing in startups. https://en.wikipedia.org/wiki/Accredited_investor https://en.wikipedia.org/wiki/Accredited_investor Realistically, though, some of your 401k fund is likely invested in startups, it's just highly diversified because it's very high risk, and you don't want to gamble with your pension pot.