[gahays68]

It doesn't require financial acumen to follow a lead that has qualified a deal. It is technically possible to form syndicates that corral millions of small checks (Blockchain) to follow leads. And while startups are risky, the investing discipline is simple: spread your bets among several "qualified deals", like poker. Anyone skeptical of this should download Fantasy Startup at Doriot.com which is working to qualify non-millionaires as SEC Accredited....you'll quickly discover that everyone can (and should) be investing in startups. All that needs to happen is, first, education, and second, scaled access. Scaled access will follow once there is a large and growing educated population of Mainstreet investors. The average age of the Accredited investor is close to 60 years old....while 98% of GenZ's and Millennials don't qualify. Does it really make sense to cockblock the generations that should be investing (given they have time and ability to take on risk) and they have to live with the investing decisions of today?

[icedchai]

I've invested in several startups, as an employee exercising options, and also as an investor. Unless you have a lot of money to spread around, you're better off investing in the stock market.

[vmception]

I've invested in several private equity funds, and many times those funds negotiate things that are far more lucrative than equity, such as temporary or permanent revenue splits, convertible notes which may be partially paid off before converting into extremely large positions in the companies, you name it. In this structure, I realize from experience, that it is not possible to compare the fund's performance to the stock market, as every limited partner has their own unique exposure to investments that all perform differently.

I've seen the headlines that match what you said, the S&P returns more than picking various startups to invest in most of the time, and that many funds also mirror that, in reality I think all discussion about this is inaccurate, because there are additional variables to account for. Maybe actual equity will underperform just picking S&P equity. But so much more is actually happening which will never show up on a cap table or comparison of valuation growth or any mandated disclosure.

[icedchai]

Sounds interesting... What's the typical amount of capital you'd need to get involved with a private equity fund?

[vmception]

$1mm will get you access to almost all.

Top ones like to turn people away just for the headline that they turned someone valuable away, so they somewhat also rely on relationships and schmoozing to get in.

In reality though, so many people are all talk about their ability to actually move any money, that $1mm will get you in everywhere. You know the saying: money talks, bullshit walks.

Note: there are other regulatory gatekeeping tiers above accredited investor, but they are all self-certifications too which means you can just say you have $5mm or $10mm in net worth, etc.

[czbond]

Awesome - no reason to keep anyone from investing in them. Anyone loses their money, their fault no matter position in life.

Doriot slots into my "crowdfunding" comment above. Agree