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
| Aug 21, 2012
Stellar wins four ABC Excellence In Construction awards
ABC's Excellence In Construction program is the industry’s leading award competition, recognizing outstanding construction projects in a variety of categories.
| Aug 20, 2012
Protecting the artifacts at George H.W. Bush Presidential Library and Museum
Roof leaks threatened to damage artifacts and disturb a delicately controlled indoor environment at the George H.W. Bush Presidential Library and Museum.
| Aug 17, 2012
Ferreri joins PGAL as Principal
Ferreri will be responsible for business development, contract negotiation, project design through construction and staff management/mentoring.
| Aug 17, 2012
Centric Architecture and PLAD Studio merge
The new firm will retain Centric Architecture as its name.
| Aug 15, 2012
MBH Architects announces new appointments
MBH Architects continues to grow, take on new clients.
| Aug 15, 2012
Architects and designers challenged in Allsteel’s reality design competition
KITS mobile app offers flexibility in planning.
| Aug 14, 2012
Leo A Daly welcomes Carl Gentilcore
Gentilcore will be responsible for identifying, developing and managing client relations with key federal government agencies.
| Aug 14, 2012
SOM Foundation announces prize recipients for 2012
Submissions for the SOM Prize were received from students at 34 schools in the U.S.
| Aug 9, 2012
Slideshow: New renderings of 1 WTC
Upon its scheduled completion in early 2014, One World Trade Center will rise 1,776 feet to the top of its spire, making it the tallest building in the Western Hemisphere.
| Aug 9, 2012
Slideshow: New renderings of 1 WTC
Upon its scheduled completion in early 2014, One World Trade Center will rise 1,776 feet to the top of its spire, making it the tallest building in the Western Hemisphere.