[muhfuhkuh]

I'd love to fund a startup without going completely broke (something like $1-2000 or something). It's just nice to have even minuscule fraction-of-a-fraction ownership in something that might be the Next Somethingorother. Kickstarter isn't really an angel investment vehicle, and Prosper is mostly for people who are trying to repair their credit or buy a car/house, not really as sexy as funding a startup.

What are the options?

[runako]

A securities offering doesn't have to be registered until it crosses a threshold, which is set by law:

http://www.sec.gov/info/smallbus/qasbsec.htm#eod6

Reg D, Rule 504: "Rule 504 provides an exemption for the offer and sale of up to $1,000,000 of securities in a 12-month period."

So your colleague's business can likely sell you shares now. However, unless they register, they can't market the shares for sale.

Crowdfunding will expand this and allow you to market your securities for sale.