Category / Crowdfunding for Infrastructure Projects
Crowdfunding for Infrastructure Projects
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Bridging the Gap Together: A New Model to Modernize U.S. Infrastructure
A great report from the BPC on the need for private investment in public infrastructure that includes a discussion on the use of crowdfunding. Here are the highlights: “An emerging discussion among infrastructure practitioners is the potential of crowdfunding to help pay for projects. Crowdfunding, in which individuals throughout the world can contribute to projects…
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New Cities Foundation Handbook on Urban Infrastructure Finance Discusses InfraShares and the Benefits of Crowdfunded Investment for P3s
The recently published New Cities Foundation Handbook on Urban Infrastructure discusses the benefits of crowdfunding private investment for public infrastructure projects and the role of the crowdfunding platform: “There are several other advantages associated with using crowdfunded P3 equity. Because the crowdfunding is provided by investors with social as well as financial motivations, they may…
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Crowdfunding: More Than Just Another Innovative Financing Strategy
A great article by Stanford’s Kate Gasparro addressing the opportunities and challenges of crowdfinancing for public infrastructure projects. Read More
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Financial Benefits of Using Crowd-financing for a P3
In addition to the social and political benefits of using crowd-financing for a P3, using crowd-financing to raise preferred equity as a portion of the capital stack allows the equity sponsors of a P3 to increase their Return on Equity (ROE) by reducing their common equity contribution. Assuming an interest rate on senior debt of…
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There are several options when crowdfunding investment for infrastructure projects
There has been a lot of hype around the new Title III crowdfunding regulations, but there are several other crowdfunding mechanisms under the JOBS Act already in place that may be better suited for infrastructure projects. Here is a review of the other investment crowdfunding regulations enabled by the JOBS Act and how they fit…
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Medium-term crowd-financing for accelerating infrastructure projects
Recent changes to securities law (2012 JOBS Act) allows for general solicitation of securities to investors (with certain limitations) through online platforms that offer investment opportunities to individual investors. Public agencies can now partner with a crowd-financing platform (CFP) to solicit medium-term loans from local and state investors who seek safe medium-term investment opportunities as…
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The trillion-dollar gap
Investment in infrastructure provides many benefits including high returns, stability of returns, portfolio diversification, and inflation hedging. Currently, there are four main avenues for investment in infrastructure: Listed shares, listed funds, unlisted securities, and un-listed funds. While listed securities are the most accessible for all investors, there are very few infrastructure assets large enough to…
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The SEC Finally Approves Regulation A+ Allowing for True Equity Crowdfunding
The SEC finally approved Regulation A+ which allows for P3 SPV’s to raise up to $50 million from accredited and unaccredited investors. This new regulation opens the door for P3 developers to raise capital from any investor in the community served by a P3 project. Now, all investors have an opportunity to participate in P3…