Successful infrastructure delivery requires community buy-in. That’s why governments and developers pour resources into public meetings and marketing material for new construction projects. When there is no buy-in, new projects can get delayed or stopped altogether from community opposition. And, with a growing gap between available funding and infrastructure needs, these outcomes are risky for any budget. To address this problem, project sponsors in the United States and around the world are tapping into crowdfunding to get literal buy-in, both social and financial, from residents and end-users.
Attracting more capital with regulation crowdfunding
While donation crowdfunding has a longer history, regulation crowdfunding has recently taken off. Enabled by the 2012 Jumpstart Our Business Startups (JOBS) Act, regulation crowdfunding allows project sponsors to work with crowdfunding platforms to issue debt and equity to the crowd. Project sponsors come