In recent years, the internet has enabled widespread "crowdfunding" of projects by large numbers of people making small contributions. The success of projects through Kickstarter and IndieGoGo have highlighted the power of this funding model.
The crowdfunding model should be extended to private investments. Individual investors interested in buying stakes in private companies must currently pay fixed regulatory and filing costs of several thousand dollars per investment, whether for 1 share or 1,000. Relaxing these requirements will allow crowdfunding businesses and startups to open an untapped pool of capital, give small investors more opportunity, and above all create jobs.
The SEC and other authorities should open an inexpensive path for investments in private companies under $500.