What could happen if everyone is not allowed to invest in private companies?
Venture Capitalists does not just bring in money. Their contribution is more in terms of getting things done quickly without red tapes through Social Connections and Influence with the pen pushers on top of the pyramid. Also with the advantage of quick access to advanced R&D already at the disposal of these Venture Capitalists. This process plays a vital part in the success of the Private Tech Companies seeking funding for further growth. So in reality, These Private Tech Companies prefer Venture Capitalist’s in comparison to ordinary investors / equity holders.