Summary: When it launched five years ago, crowdfunding for real estate development was a hot topic, especially among hotel developers seeking new ways to pay for their projects.<br> Though it’s not creating the same level of buzz as it did when it first became a federally sanctioned option in 2014, crowdfunding remains a viable tool in attracting a wide range of investors and sourcing new streams of cash.<br> Basically, crowdfunding is a campaign for small amounts of money from a large number of people. It is friends and family financing gone viral.<br> We talk to hotel developers who are using the alternative financing method to raise cash for their projects.<br> The projects are vastly different, as are the fundraisers’ goals, and target investors.<br> One is a boutique property in a resort market, and the developer plans to raise the entire construction cost via crowdfunding. The other is a midscale branded hotel in a technology park, and the firm is selling shares to close a funding gap.<br> Featured in today’s report is Nathan Kivi, founder of HotelierCo, an online fundraising company targeting hotel development; and Bhavik Dani, founder of EquityRoots, another fintech venture that’s raising capital for one project while about to break ground on another.<br> We also explain the evolution of crowdfunding, and why the federal government gave the technology its nod of approval as part of a national economic recovery program.<br> Anyone considering raising money for a project over the internet, or investing money via an online program, should first consult a professional adviser.<br> Resources and Links<br> <br> * <a href="https://www.linkedin.com/in/nathankivi/" target="_blank" rel="noopener noreferrer">Nathan Kivi</a>, founder of <a href="https://www.hotelierco.com/" target="_blank" rel="noopener noreferrer">HotelierCo</a><br> * <a href="https://www.linkedin.com/in/bhavikdani/" target="_blank" rel="noopener noreferrer">Bhavik Dani</a>, founder of <a href="https://www.equityroots.com/" target="_blank" rel="noopener noreferrer">EquityRoots</a><br> <br> For more information on crowdfunding visit:<br> <br> * <a href="https://www.investor.gov/additional-resources/general-resources/glossary/regulation-crowdfunding" target="_blank" rel="noopener noreferrer">Investor.gov</a><br> * <a href="https://www.sec.gov/spotlight/crowdfunding.shtml" target="_blank" rel="noopener noreferrer">SEC’s Spotlight on Crowdfunding</a><br> <br> The SEC study mentioned in this report is titled “Capital Raising in the U.S.: An Analysis of the Market for Unregistered Securities Offerings, 2009‐2017” and can be accessed <a href="https://www.sec.gov/dera/staff-papers/white-papers/dera_white_paper_regulation_d_082018" target="_blank" rel="noopener noreferrer">here</a>.<br>
