Building Cities Together: The Power of Equity Crowdfunding

🏙️Equity crowdfunding empowers individuals to invest directly in local businesses and buildings, enabling them to shape the development of their cities.

💰Traditional sources of capital in real estate have disconnected people from what they invest in, making it a commodity rather than a place with meaning.

🤝The JOBS Act, passed by Congress and the Obama administration, is paving the way for transformative changes in the financial sector, allowing technology to access capital.

🌍Crowdfunding has the potential to do to Wall Street what Twitter and blogs did to newspapers, giving communities the power to fund and shape their own cities.

🔨By leveraging equity crowdfunding, individuals can invest in projects that align with their values, such as affordable housing, bookstores, or local businesses, creating vibrant and meaningful neighborhoods.

What is equity crowdfunding?

—Equity crowdfunding is a method that enables individuals to invest directly in businesses or real estate projects in their local community, giving them a stake and a say in the development process.

How does equity crowdfunding differ from traditional investment?

—Unlike traditional investment, which often involves large financial institutions and disconnected stakeholders, equity crowdfunding allows everyday individuals to invest modest amounts of money directly in projects they believe in.

What is the JOBS Act?

—The JOBS Act, passed in 2012, stands for Jumpstart Our Business Startups Act. It is a bipartisan bill aimed at facilitating access to capital for small businesses and startups, including through equity crowdfunding.

Why is equity crowdfunding important?

—Equity crowdfunding democratizes access to capital, giving individuals the power to shape the development of their cities and invest in projects that align with their values, fostering vibrant and inclusive communities.

How can individuals get involved in equity crowdfunding?

—Individuals can participate in equity crowdfunding by researching and identifying local projects or businesses that resonate with their interests and values, and investing directly through crowdfunding platforms that facilitate such transactions.

00:13Equity crowdfunding emerged as a response to the 2008 recession, enabling individuals to clean up the financial system through technology-driven bottom-up investments.

01:15The founders wanted to contribute to their neighborhoods' development by renovating vacant buildings and establishing new businesses and retail options.

03:07The institutionalization of real estate disconnected local investors from the projects, turning real estate into a commodity rather than a meaningful place.

05:23The savings and loan crisis in the late 1980s led to the creation of private equity funds and real estate investment trusts, further separating ownership from the local community.

07:33Despite initial doubts and regulatory challenges, equity crowdfunding gained traction and allowed for direct investments from neighborhood residents.

10:28The JOBS Act, passed in 2012, opened up opportunities for crowdfunding, bringing about potential transformative changes in the financial sector.

11:57Equity crowdfunding empowers individuals to build the cities they want to live in by investing in projects aligned with their values and fostering connections with their communities.