In fairness to the lottery, few people consider it to be a sensible place to stick 50% of their net worth. Bearing in mind that top startups - which generate nearly all the return to VCs - have a marked preference for "smart money" and the majority of startups ventures fail hard, most lotteries probably have a higher expected value than retail investors are likely to see from the average crowdfunding portfolio.
If I understand correctly, the 10% of net worth restriction applies to investments in a single startup.
That being the case you can guarantee there will be commission-earning intermediaries or platforms misrepresenting the concept of portfolio diversification to encourage people to invest in as many startups as they can afford...
