[tptacek]

I really don't think we need to concede the equivalence between restricting equity crowdfunding and outlawing gambling. Gambling is legal because, as marketed, it's an entertainment product. Equity crowdfunding is restricted because it's an investment product.

Similarly, GNC can sell all sorts of useless nutritional supplements, but the FDA is all up in the business of anyone trying to sell a new medication.

Reminder: you can take money from non-accredited investors; it's just so complicated that it's not practical to do so at scale and with strangers.

[SilasX]

So, let's say I market the crowdfunding shares as an entertainment product. Then it could become a legal model?

Relatedly, I had the idea to sell small shares of (legit, regulated) far-out-of-the-money options as lottery tickets. As investment products, they're legal, but work like lottery tickets in that you have a tiny chance of winning big (e.g. if the underlying security has a sudden, sharp shift in price).

[tptacek]

Yes. That is, for instance, how Kickstarter works.

[dandelany]

> Reminder: you can take money from non-accredited investors

My understanding is that it's only legal if investors approach you, or if you solicit individual investors on a one-by-one basis. It's illegal to simply announce that you're publicly accepting investment. I wholeheartedly agree that the marketing of these types of offerings need to be tightly regulated, but as it stands today, it's effectively impossible to participate (as an investor) without having a personal connection to the business.

[tptacek]

That's correct, and what I mean about it being difficult to accept non-accredited money at scale. Which is the difference between being able to invest, and being able to market an investment.