Most investments are not $50k into an ice cream stand but $50k into the stock market. Also someone with $50 million can still invest into an ice cream stand but someone with $50k cannot be an early investor into a tech company.
Small businesses are a huge target of investments. As for stocks, micro-caps have historically outperformed large-caps, and micro-caps individually are limited in how much investment capital they can efficiently utilize.
>Also someone with $50 million can still invest into an ice cream stand but someone with $50k cannot be an early investor into a tech company.
That is mostly due to regulatory restrictions on public offerings, and yes, that contributes to greater income inequality.
In a free market however, you'd see low-friction token sales, with thousands of contributors, providing the tech company with its initial capital, not a small cadre of VCs.
