And, I think equally importantly: even if you could overcome the regulatory obstacles to put retail investors on an even footing with institutional investors in the eyes of the law, VCs would retain market-bending advantages, and there's little the SEC can do about that.

In the same sense that retail investors are urged not to try to outcompete professional investors by picking stocks, equity crowdfunders are in direct competition with VC firms. VC firms are staffed by professional investment bankers who build relationships with pension funds and endowments that give them access to enormous amounts of money. They understand --- because it's their job --- how to manage portfolios in which most of their investments will be zeroed out, and so they can negotiate better deals.

This seems like a vicious cycle of adverse selection.