It seems entirely unreasonable to manage a bunch of "tiny" investments. It just sounds like a legal nightmare.

I think you'd have to pool all of the tiny investments into one large investment, and then that investment would have to have one person (or a small few) handle all interactions between the investment block and the startup. You'd essentially be creating a fund, in which investors of the fund would have a wall between their investment and the funds ultimate investment.

Even with all that, it seems like a very easy way for a person to lose their money. Startups are very risky investments and the people who succeed at investing are the ones who have developed a strategy for picking winners. Even if smart people decide that their strategy will be piggybacking off of more experienced investors' decisions, the market would still be ripe for drawing in lots of suckers to make really stupid investment decisions, though there are already lots of currently legal alternatives for that.

Financial literacy is already bad enough in this country, does it make sense to make learning it even harder?