I get what you're saying, and I want to be optimistic about this too. I agree that it will likely spur a lot of innovation if we make it easier to invest in interesting early-stage projects. And yeah, VCs definitely do get fleeced as well, I like Theranos as an example. They're more disciplined than many investors because their funds are structured, though, so they're not likely to dump their entire life savings into the hands of a charlatan, unlike many private investors.

Maybe there's a way to structure this to get the benefits while still protecting the little guys. Maybe the new law's restrictions are enough, since they'll ostensibly be enforced by the gatekeepers who facilitate the investment. I certainly hope so.