The Securities and Exchange Commission today voted 5-0 to propose rules aimed at letting startups tap large numbers of ordinary investors for small amounts of capital. Under the long-delayed "crowdfunding” regulations, small firms could sell shares through online "portals," where thousands of investors could pore over the business plans of small companies and choose promising investments.
The American Institute of Architects (AIA) in February had urged the SEC to issue such regulations for equity-based crowdfunding, citing the ability of this innovative financing tool to create jobs and maintain the current economic recovery.
Crowdfunding, the practice of investing in projects through the use of a crowd-supported web based fundraising campaign, shows significant promise for attracting investors to smaller real estate projects and getting them off the architect’s drawing board. According to an AIA report, the amount of money generated by crowdfunding was close to $1.5 billion in 2011.
AIA President Mickey Jacob, FAIA, said:
“Architects and design professionals of every industry are grateful that the SEC has finally proposed these final regulations to further develop businesses and provide increased value to the American economy. Once these rules are finalized, crowdfunding may well become a major vehicle for communities to develop revitalization projects that may often be too small to attract enough investment capital.
“We look forward to the SEC adopting final crowdfunding regulations soon and stand ready to help educate the design and construction community about the tremendous potential of this innovative fund-raising tool.”
About the American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.
Related Stories
Architects | Jun 22, 2021
6 ways design can supercharge innovation in health sciences and medical education
It might sound radical, but the best way to achieve better collaboration is by eliminating traditional operational silos and the resulting departments.
K-12 Schools | Jun 20, 2021
Los Angeles County issues design guidelines for extending PreK-12 learning to the outdoors
The report covers everything from funding and site prep recommendations to whether large rocks can be used as seating.
Hotel Facilities | Jun 18, 2021
Adaptive reuse for hospitality, with Frank Cretella of Landmark Developers
In an exclusive interview for HorizonTV, Landmark Developers' President Frank Cretella talks about the firm's adaptive reuse projects for the hospitality sector. Cretella outlines his company's keys to success in hospitality development, including finding unique properties and creating memorable spaces.
Architects | Jun 16, 2021
BSB Design acquires California architectural firm Withee Malcolm
The acquisition marks a pivotal step in BSB Design’s long-term strategic plan.
Architects | Jun 15, 2021
Sandy Hook Permanent Memorial set to break ground
SWA Group designed the project.
Architects | Jun 15, 2021
Chicago Architecture Center and Chicago Architectural Club announce competition calling for new visions for State of Illinois “Thompson Center”
Competition seeks to give State of Illinois Center new life while preserving its architecture and public character.
Wood | Jun 10, 2021
Three AEC firms launch a mass timber product for quicker school construction
TimberQuest brand seeks to avoid overinvestment in production that has plagued other CLT providers.
Office Buildings | Jun 10, 2021
The future of the workplace is social clubs
Office design experts from NELSON Worldwide propose a new concept for the workplace, one that resembles the social clubs of the past.
Multifamily Housing | Jun 3, 2021
Student Housing Trends 2021-2022
In this exclusive video interview for HorizonTV, Fred Pierce, CEO of Pierce Education Properties, developer and manager of off-campus student residences, chats with Rob Cassidy, Editor, MULTIFAMILY Design + Construction about student housing during the pandemic and what to expect for on-campus and off-campus housing in Fall 2021 and into 2022.
Architects | Jun 2, 2021
Two new practice leaders appointed at FGM Architects
FGM Architects appoints Jan Behounek to lead Higher Education and Scott Nall to lead Federal Practice.
