[jhubert]

According to the lawyer that I spoke with, I think I'm ok from a legal stance because you're not actually buying a chance to win 10k. You're buying a product (advertising on TweetFolk.com), and I'm simply selecting an idea from the pool of customers and making an investment in them.

From an accredited investor point of view, I don't think that applies. I've spoken with a number of VC friends of mine and they said that I'm in the clear. I can give 10K to anyone I want, from my wife to a random stranger I've never met before. The terms are just based on the agreement.

As for shaking off $10K being a very long time, I disagree. Many startups kick off with 10K and make a profit in their first year, especially in the product space. 10K is enough money for a young person to leave their job for a few months to build an invoice suite or iPhone application. It's just enough freedom to let you move on your idea.