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Prodigy Networks hopes to raise $31M in equity to crowdfund a Manhattan Hotel

A New York real-estate company that has been a leader in crowdfunding in South America plans to replicate that strategy in the U.S. Prodigy Networks—known for raising $171 million in $20,000 increments for a mixed-use skyscraper development under way in Bogotá, Colombia—hopes to raise $31 million in equity, $100,000 at a time, for a hotel project in downtown Manhattan, according to a person familiar with the plans. The developer plans to convert the apartment building at 17 John St. to an extended-stay hotel. Prodigy is trying to take advantage of the Securities and Exchange Commission’s move to lift a decades-old ban on private companies advertising investments that aren’t registered with the SEC. The change is scheduled to go into effect on Sept. 23. Prodigy wants to convert an apartment building at 17 John Street in Manhattan to an extended-stay hotel. 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. The new SEC rules were required by the 2012 Jumpstart Our Business Startups, or JOBS, Act, […]

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