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
Codes and Standards | Apr 6, 2015
Industry groups petition for change order reform on federal projects
Nine design and construction associations ask for assurance that funds available for additional work.
High-rise Construction | Apr 6, 2015
Melbourne tower will light up depending on weather
The tower will be illuminated by 164-foot-tall beams of LED light based on weather updates from the Bureau of Meteorology.
BIM and Information Technology | Apr 3, 2015
French startup develops drone camera that overlays video with 3D images
The new drones can capture video and overlay the shot results with 3D images and augmented reality remotely.
Libraries | Apr 2, 2015
6 award-winning libraries showcase next-gen design strategies
The new Cedar Rapids Public Library and the restored Slover Library in Norfolk, Va., are among six breakthrough projects honored with 2015 AIA/ALA Library Building Awards.
Contractors | Apr 1, 2015
ABC: Nonresidential construction spending flat in February
The Associated Builders and Contractors forecasts a robust nonresidential construction spending recovery in 2015, despite an underwhelming start.
Office Buildings | Apr 1, 2015
IBM's supercomputer Watson finds new home in Manhattan's Silicon Alley
The new headquarters for the former Jeopardy champ was conceived as a showcase for Watson’s capabilities, and as an inspirational workspace for Millennials and idea generators of all ages.
Sponsored | Fire and Life Safety | Apr 1, 2015
Radiant Heat: The Invisible Killer
Where there’s smoke, there’s fire. Where there’s fire, there’s the deadly threat of radiant heat.
Modular Building | Mar 31, 2015
Phoenix apartment complex will be made from recycled shipping containers
The eight-unit complex, called Containers on Grand, was inspired by the need for affordable and sustainable housing near the city's core.
Cultural Facilities | Mar 31, 2015
Pratt Institute to offer first-ever degree in placemaking
As part of its new Urban Placemaking and Management degree, Pratt will offer courses on topics such as "the history and theory of public space" and the "economics of place."
Architects | Mar 30, 2015
Q+A with Arthur Gensler, and advice from his new book
"Designers need to be trained to solve their clients’ problems through design while leading their own firms to become sustainable practices," says Gensler.
