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
| Oct 23, 2013
Gehry, Foster join Battersea Power Station redevelopment
Norman Foster and Frank Gehry have been selected to design a retail section within the £8 billion redevelopment of Battersea Power Station in London.
| Oct 23, 2013
Some lesser-known benefits of metal buildings
While the durability of metal as a construction material is widely recognized, some of its other advantages are less commonly acknowledged and appreciated.
| Oct 23, 2013
Architecture Billings Index hits seven-month high in September
AIA's Architecture Billings Index was 54.3 in September, the highest level since February 2013
| Oct 18, 2013
Meet the winners of BD+C's $5,000 Vision U40 Competition
Fifteen teams competed last week in the first annual Vision U40 Competition at BD+C's Under 40 Leadership Summit in San Francisco. Here are the five winning teams, including the $3,000 grand prize honorees.
| Oct 18, 2013
A picture’s worth a thousand words… if you can find it
Photographs are becoming more essential to project communication and documentation. Recently, I sat in a local airport integration project meeting in which the owner outlined their expectation for construction documentation. One of the first requirements was to provide photographs throughout the building process.
| Oct 18, 2013
Researchers discover tension-fusing properties of metal
When a group of MIT researchers recently discovered that stress can cause metal alloy to fuse rather than break apart, they assumed it must be a mistake. It wasn't. The surprising finding could lead to self-healing materials that repair early damage before it has a chance to spread.
| Oct 18, 2013
Call for submissions: AIA Emerging Professionals Summit essays
The American Institute of Architects (AIA) is seeking essays that will address what role architects will play in society in 2033.
| Oct 16, 2013
5 secrets of successful entrepreneurs
If you’re on the outside looking in, successful entrepreneurship may seem mysterious. But it isn’t. Here are five patterns of behavior that are common to successful entrepreneurs.
| Oct 15, 2013
High-rise Art Deco courthouse gets a makeover in Amarillo, Texas
Recognized as one of the most significant Art Deco courthouses in Texas, the Potter County Courthouse is modernized and restored to its 1930s aesthetic.
| Oct 10, 2013
Behind the scenes at the U40 Summit: See the $5,000 U40 Vision competition in progress [slideshow]
Sixty-five up-and-coming AEC leaders are battling for $5,000 in prizes today at BD+C's Under 40 Leadership Summit in San Francisco.
