What is democratization of investing?


The term "democratization of investing" refers to making investment opportunities accessible to a broader range of people, particularly those who traditionally may not have had the means or the opportunity to invest. This concept is highlighted in the discourse about enabling individuals, regardless of their economic status, to invest in private companies.

Shane Parrish discusses this topic with Jason Calacanis on "The Knowledge Project". Calacanis argues that the traditional economic systems have often protected poor people by restricting their ability to take investment risks. This protection, though grounded in a noble intent, may limit their economic opportunities. Calacanis specifically highlights how ordinary people, including Uber drivers, could benefit if they were able to invest small amounts regularly in the companies they work for, potentially leading to significant financial gains. His goal, particularly in the latter part of his career, is to make this type of investing available so that "poor could become middle class, and middle class people could become rich" 1.

Democratizing Private Company Investing

Jason discusses how the current economic system is designed to protect poor people by not allowing them to take risks, but he believes in capitalism and wants to democratize private company investing so that people who are poor could become middle class, and middle class people could become rich.

The Knowledge Project

Jason Calacanis — The Knowledge Project #81