Kickstarter is the prime example. Equity crowdfunding exchanges an ownership stake in an entity, which can take many different forms. The core idea is that blockchain could be used to create a transparent and trusted way to bypass traditional financial institutions and allow the public sale of equity to a mass audience. Architects can then use this blockchain-driven platform with the public to propose and accept projects, fund, and execute them.
the "software" of space or new tools for automating practice and streamlining collaboration. If designers are natural entrepreneurs and data is a new medium to work with, it's only a matter of time before digital natives embrace and apply it. A new dawn of practice can emerge if this data-driven battery can charge new practices that democratize design for the masses. ■
Up until now, under SEC rules, it was illegal to offer equity to the public. Previously, only "accredited investors" making over $200,000 in combined income were allowed to buy equity, keeping the majority of the public from participating. In May of 2016, Title III of the 2012 JOBS Act (Jumpstart Our Business Startups) took effect, enabling equity crowdfunding to take place for everyday investors and allowing up to $1 million of funding to be raised online. Like a miniature public offering. FOAM aspires to apply this to architecture projects and change the fundamental owner-architect relationship. It envisions a platform on which projects can be proposed and equity can be raised for a project. Blockchain would enable the secure management of heterogeneous, crowdfunded ownership stakes, without the backing of a major financial institution. This new method of funding could revolutionize the practice of architecture by democratizing the financing of projects. Furthermore, FOAM’s vision includes a new way of practice. Where instead of being organized into firms, architects would collaborate through an online platform on a project-by-project basis. A proposal could be made, and interested designers, investors and the public could all buy equity in a project and contribute to its development. This essentially eliminates the black-and-white relationship between owner and architect and creates a new realm of possibility for practice. Architects would be able to invest in and own their projects instead of performing a service for a client. FOAM hopes that equity crowdfunding serves as supplemental funding. At the same time, it would create a new business model for the architect. FOAM is developing the back-end blockchain mechanics of a platform to achieve all of this. Much stands in their way, including legal and insurance challenges, and it is seeking funding to move forward. Despite these challenges, the hope is to create a platform that would open up architecture to the public and empower people and the architect to own the built environment, all run on a secure blockchain technology. However, would this be enough to disrupt the fortified ramparts of practice? If this model works, it could level the playing field and let a crop of millennial designers challenge the conventions of the profession. Whether it's blockchain or bots, data is the new battery of practice at the core of disrupting the profession. The exciting part is, there are opportunities for a plethora of new models that can create a data-driven design economy. Some startup firms may develop
WWW.AIA.ORG/YAF
OCTOBER 2016
21