Having lived through the first dot-com bubble, my belief was that it was facilitated in part by unsophisticated investors chasing outsized returns (the so called "retail" investors). The startup market largely escaped the 'bubble' fate by virtue of the fact that the bar for investing in startups was high enough that the people who qualified either understood the risks are were willing to lose everything in their bet (pure gamblers).

My fear is that opening up startup investing to a wider pool will not only fund a lot of startups that should not have been funded (just like the dot.com boom rewarded companies that should not have been rewarded) it will result in a catastrophic correction down the road where a lot of people will have lost everything and will be asking the government to use taxpayer money to make them whole again.