[mqsley]

It's about time really. Here in the UK equity crowdfunding has given much needed capital to businesses.

Does everyone invest? Hell no. Do wealthy people now diversify their portfolios with risky start ups? Yes.

There are vigilant checks every investor has to go through that limits the amount of capital they are allowed to invest which limits the risk for even the littlest of guys.

When you go to invest you are warned, I mean REALLY warned several times that you will probably lose your investment.

This could actually reduce said "bubble" as private investors are not stupid and the valuations you see are very modest.

My final point would be that the fundraising activities are open. The companies are subject to heavy scrutiny through Q&A's and all potential investors can see these conversations occurring.

I personally have chosen not to invest in companies that others are flocking too as their answers to my questions are so theoretical and I know many investors who have felt the same.

[DennisP]

That's a good point. There's been a lot of scaremongering on this issue, which ignores the fact that in various other countries the general public has been able to invest in startups for a long time, without the ill effects so many people predict in the U.S.

[beagle3]

For whatever reason, the US seems to dislike experience from outside the US - that goes for both regulators and voters.

Despite Canada, Europe and Japan having efficient functional socialized medicine for at least half a decade, the discussion in the US was about "death panels" and "health welfare queens" and other completely nonexistent issues anywhere else.

There are a lot of other such issues, such as gay marriage, gambling, etc - that I don't find it surprising that crowdfunding is also part of that group of subjects. I only find it sad.

(On the other hand, significant gun-associated violence is practically unheard of outside the US, even in places that have comparable gun density such as Switzerland and Israel, where almost all males have access to guns, and some cities in Canada; So maybe the US actually is a special case)