[MathCodeLove]

Alternatively, the decreased risk may incentivize larger or more frequent investments and simultaneously draw in newer investors and make it easier for them to take the plunge.

It does allow the rich to get richer if the company does well, but it also facilitates startup funding and could very well be the difference between a startup getting the funding it needs to be successful or it getting denied due to risk factors.

[hooande]

> "So investors can put money into many more long shot companies."

[MathCodeLove]

Right but you phrase it like some horrible thing when it's a net positive for the investors, the business owners/folders, and the broader economy. Just because "the rich get richer" doesn't mean it's inherently bad and that others don't also get richer. It's not a 0 sum game.