This looks like this could be a big deal. Kickstarter would be a lot more fair and more compelling if the backers were also investors, and could get a piece of the upside when helping to support development for a risky product. And it makes a lot of sense that consumers should be investors, since they often know the space better than a VC.

My immediate concern is that these rules look somewhat complicated. What will it mean to have to file a modified version of an S-1? How much will compliance cost when trying to go this route? Maybe there will be an enterprising YC company that help with Reg A+ compliance automation...?

Reg A may even be better than Title III because it’s about allowing the public to invest alongside sophisticated investors into large deals.