Actually this isn't a bad model: If you use software to easily create syndicates, you could raise a few months, assuming you keep your burn at two guys in a garage.

Kickstarter meets angel.co

If you put money in the company, it's completely through standardized docs that say it is uncapped convertible debt.

So you can create rolling syndicates of people that each contribute $50 or $250 or $1250 dollars.

This is done publicly, and is a way for angels to signal mild interest in a company in a public way.

Conversion should not be triggered by an investment under $50K, to prevent the argument that the early investors bought equity at the same price as YC.

It makes the market for equity in startups a little more efficient.