-- In essence, regulators probably want to enable everyone to do it.
-- Regulators passively balance capital efficiency and market risk.
-- New changes in technology, together recent cheap money, make traditional balancing outdated.
Conceptually wishing all capital to go into the circulation, regulators often resort to natural limitation to balance financial risks, factors such as capital owners' discretion, fund raising and exiting's cost, and raiser own money's significant involvement.
The system seems functioning normally in cases where people, who have no experience, raise money from friends and relatives, where people, who have long term tracking records of investment, raise money on a limited platform, or where people, who have put lots of money into company or fund, raise more.
However, when people come to current technology platforms on which influence can be transferred at an unprecedently high speed and which much more people can easily access to and exit from, the bar for money raisers' qualification, their own money's weight, and investors must rise, especially when people do not mind risks due to the cheapness of money and as well relatively small size of investment.