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
| May 3, 2013
Another edible city? Artist creates model city with chewing gum
French artist Jeremy Laffon pieced together a model city with thousands of sticks of mint-green chewing gum.
| May 2, 2013
First look: UC-Davis art museum by SO-IL and Bohlin Cywinski Jackson
The University of California, Davis has selected emerging New York-based practice SO-IL to design a new campus’ art museum, which is envisioned to be a “regional center of experimentation, participation and learning.”
| May 2, 2013
A snapshot of the world's amazing construction feats (in one flashy infographic)
From the Great Pyramids of Giza to the U.S. Interstate Highway System, this infographic outlines interesting facts about some of the world's most notable construction projects.
| May 2, 2013
Holl-designed Campbell Sports Center completed at Columbia
Steven Holl Architects celebrates the completion of the Campbell Sports Center, Columbia University’s new training and teaching facility.
| May 2, 2013
BIM group proposes uniform standards for how complete plans need to be
A nationwide group of Building Information Modeling users, known as the BIMForum, is seeking industry input on a proposed set of standards establishing how complete Building Information Models (BIMs) need to be for different stages of the design and construction process.
| May 2, 2013
New web community aims to revitalize abandoned buildings
Italian innovators Andrea Sesta and Daniela Galvani hope to create a worldwide database of abandoned facilities, ripe for redevelopment, with their [im]possible living internet community.
| May 1, 2013
A LEGO lover's dream: Guide to building the world's iconic structures with LEGO
A new book from LEGO master builder Warren Elsmore offers instructions for creating scale models of buildings and landmarks with LEGO.
| May 1, 2013
New AISC competition aims to shape the future of steel
Do you have the next great idea for a groundbreaking technology, model shop or building that could potentially revolutionize the future of the steel design and construction industry? Enter AISC's first-ever Future of Steel competition.