Prodigy Network hopes to raise $31 million in equity, in increments of$100,000 at a time using crowdfunding. The money will fund a hotel project in downtown Manhattan, converting an apartment building to an extended-stay hotel.
Prodigy is trying to take advantage of a move by the Securities and Exchange Commission to lift a decades-old ban on private companies advertising investments that aren’t registered with the SEC.
Rodrigo Niño, Prodigy’s chief executive, said the SEC’s move to relax fundraising restrictions will have major repercussions for investors and developers alike. “We have learned that crowdfunding not only democratizes investments, it also makes projects viable that otherwise would not be possible,” he said.
Read the entire article online at the Wall Street Journal.