Startups are hard and risky, which is precisely why it's dominated by "wealthy entitled children". If a poor kid's startup fails, poor kid gets kicked out of his house and starves. If a wealthy kid's startup fails, wealthy kid doesn't get to buy his Ferrari for another year.
I have no idea how to break this vicious cycle, apart from strengthening social safety nets for the lower classes to minimize downside risk. But we know once you start providing welfare for the poor, they'll simply stop working, right?
Kickstarter and crowdfunding are a great next step. When it's not just rich old guys picking which projects get funded you get Oculus and an entire new VR industry, created by a unpedigreed outsider that no investor would have given the time of day to.
The real shift will come when crowdfunding for equity is possible. When not just rich investors will be able to benefit from the massive wealth creation of technology companies. It may be that regular people are willing and able to fund as many viable projects as exist.
Exactly: People talk about how Bill Gates dropped out of college to make a startup, but many gloss over his socioeconomic starting-point that let him "afford the risk".
I have no idea how to break this vicious cycle, apart from strengthening social safety nets for the lower classes to minimize downside risk. But we know once you start providing welfare for the poor, they'll simply stop working, right?