[shriram_b02]

The SEC has decided to use income and net worth as a proxy for ability to properly evaluate risks/benefits of unregistered offerings. Registered offerings require SEC approval and much more disclosure, which protect investors. Income and net worth are a blunt way of getting to adequate sophistication.

Money raised through Kickstarter and Indiegogo aren't covered by these provisions, so you're good on your "investments" in Pebble and RR if they are via those platforms. Good use of air quotes, since you're not really participating on the equity upside.

From a macro view, one can argue that the current limitations perpetuate prosperity for the wealthy, while denying everyone else access to higher-performing alternative investments.

[Zikes]

I really don't even know what to call the Kickstarter exchanges. You're not allowed to call it a purchase because there may or may not even be a "reward" or "product", especially with projects like Reading Rainbow. It's not a donation, because they can offer rewards and are apparently required to provide them if they are successful.

They do seem to promote the idea that you're making an investment, just without the sort of potential (or scaling) returns you'd see from a conventional investment.