Retail investors are pouring millions into equity crowdfunding

Warren Buffett's first rule: don't lose money Warren Buffett's second rule: don't forget the first rule

There is a good reason the federal government has restricted participation in private investment vehicles to accredited investors. The odds of winning the lottery on the type of business that needs to resort to crowd funding is vanishingly small. I would speculate that the majority of people drawn to these types of crowdfunding investment vehicles do not have a positive net worth or meaningful retirement savings.