Regulations like the 'Accredited Investor' rule, originally designed to shield small investors from risky ventures, are now perceived as gatekeeping. Retail investors argue these rules don't protect them but instead protect the elite's exclusive access to high-growth, wealth-generating opportunities.

A common mistake in venture capital is investing too early based on founder pedigree or gut feel, which is akin to 'shooting in the dark'. A more disciplined private equity approach waits for companies to establish repeatable, business-driven key performance metrics before committing capital, reducing portfolio variance.

When private equity firms begin marketing to retail investors, it's less about sharing wealth and more a sign of distress. This pivot often occurs when institutional backers demand returns and raising new capital becomes difficult, forcing firms to tap the public for liquidity.

The INVEST Act mandates a free test allowing non-accredited investors (95% of the US) to participate in venture capital. This shifts the barrier to entry from personal wealth to demonstrated financial knowledge, potentially unlocking a massive new pool of capital for startups from everyday professionals.

Botha argues venture capital isn't a scalable asset class. Despite massive capital inflows (~$250B/year), the number of significant ($1B+) exits hasn't increased from ~20 per year. The math for industry-wide returns doesn't work, making it a "return-free risk" for many LPs.

An expert reveals two shocking statistics: 80% of new founders fail their first diligence attempt, and 85% of early-stage investors don't perform confirmatory diligence. This highlights a massive, systemic weakness and inefficiency in the startup ecosystem, creating significant risk on both sides of the table.

Gurley argues that the rise of mega VC funds has fundamentally changed capital markets. These funds convince successful companies like Stripe to stay private longer, effectively 'hijacking' their hyper-growth years from the public markets. This prevents public investors from participating in wealth creation as they did with companies like Amazon.

Before GPs can successfully tap into the retail market, they must recognize the immense operational costs. Managing, reporting for, and administering funds with thousands of small investors has a high break-even point. Without the ability to achieve significant scale, the economics of these products are unworkable.

The majority of venture capital funds fail to return capital, with a 60% loss-making base rate. This highlights that VC is a power-law-driven asset class. The key to success is not picking consistently good funds, but ensuring access to the tiny fraction of funds that generate extraordinary, outlier returns.