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
| Apr 8, 2014
Science, engineering find common ground on the Northeastern University campus [slideshow]
The new Interdisciplinary Science and Engineering Building is designed to maximize potential of serendipitous meetings between researchers.
| Apr 8, 2014
40 Under 40 winners: Meet the contractors
Of the up-and-coming AEC professionals to be named to the class of 2014, nine make their living as contractors.
| Apr 7, 2014
40 Under 40 winners: Meet the architects
Of the up-and-coming AEC professionals to be named 40 Under 40 winners by the editors of Building Design+Construction, 21 make their living in the architecture profession.
| Apr 4, 2014
$25 million Orion Jet Center designed by SchenkelShultz now open
As the centerpiece of the 45-acre campus, which is its first phase of a planned 215-acre mixed-use development, the 18,000 square foot executive terminal facility offers spacious passenger areas, administrative space, an executive suite, rental car kiosk, catering and a cafe.
| Apr 3, 2014
Security, accountability, and cloud access: Can you really have it all?
I’ve heard countless stories of conversations between project engineers and IT professionals who can’t come to an agreement on the level of security needed to protect their data while making it more accessible—not only externally, but also internally.
| Apr 2, 2014
The new model of healthcare facility management
A growing number of healthcare organizations are moving to an integrated real estate model in an effort to better manage costs, respond to regulatory requirements, and support changes in patient care delivery.
| Apr 2, 2014
8 tips for avoiding thermal bridges in window applications
Aligning thermal breaks and applying air barriers are among the top design and installation tricks recommended by building enclosure experts.
| Apr 2, 2014
Check out the stunning research facility just named 2014 Lab of the Year [slideshow]
NREL's Energy Systems Integration Facility takes top honors in R&D Magazine's 48th annual lab design awards.
| Apr 1, 2014
The risks of mismatched fire-rated assemblies
Mismatched fire-rated glass and framing happens more often than you think. Failing to confirm that the tested and listed performance capabilities of the framing system match those of the glazing can create a financial nightmare for the entire building team.
| Apr 1, 2014
Planned global commerce center breaks ground near Phoenix
When completed, PhoenixMart will be one of the largest single-level trade centers in the U.S.