[notahacker]

Nonsense. Venture capital, as an asset class, performs far worse than regular stock indices anybody can buy with a smartphone (Some funds do very well indeed, but others actually lose their LPs money). That's venture capital as practised by professionals that get warm introductions to the highest performing startups, have teams of people to do due diligence for them, involve themselves in hiring and firing the C-suite, can award themselves ridiculously favourable terms like liquidation preferences if the company's struggling and have connections at Valley companies awash with cash when they need to get a startup that'll never be profitable an exit.

Joe Public needs to do better than the people who already have more education and tools and influence than the average person can ever expect, just to break even on their startup portfolio. And let's face it, Joe Public wants to "invest" whilst being so wilfully ignorant of basics like liquidity and adverse selection they think there's nothing to actually be protected from...

[errantmind]

People often learn one mistake at a time. Let them. If they go bankrupt, so be it.

Not everyone wants a nanny state to dictate their activities.