Don't forget, this law doesn't let people bet their life savings on a whim. From the article:

"The new law eases the process of raising that first $1 million by letting people ask their neighbors for up to $5,000. While companies must inform investors of the risk and provide quarterly reports, they can skip the audit and other expenses typically needed to attract investors."

So, it is $5k at a time. The main difference between this and the normal "friends and family financing" is that it can be a larger number of less connected investors and the company needs to provide reports.

Being a member of an investment club (and being surprised at the lack of uptake), I'll be interested to see whether or not the investments allowed by this law are worth entrepreneurs' time.