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  • March 2014 (Revised January 2015)
  • Case
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Prodigy Network: Democratizing Real Estate Design and Financing

By: Karim R. Lakhani, Katja Hutter and Greta Friar
  • Format:Print
  • | Language:English
  • | Pages:24
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Abstract

This case follows Rodrigo Nino, founder and CEO of commercial real estate development company Prodigy Network, as he develops an equity-based crowdfunding model for small investors to access commercial real estate in Colombia, then tries out the model in the U.S. U.S. regulations, starting with the Securities Act of 1933, effectively barred sponsors from soliciting small investors for large commercial real estate. However, the JOBS Act of 2013 loosened U.S. restrictions on equity crowdfunding. Nino believes that crowdfunding will democratize real estate development by providing a new asset class for small investors, revolutionizing the industry. The case also follows Nino's development of an online platform to crowdsource design for his crowdfunded buildings, maximizing shared value throughout the development process. Nino faces many challenges as he attempts to crowdfund an extended stay hotel in Manhattan, New York. For example, crowdfunded real estate faces resistance from industry leaders, especially in regards to the concern of fraud, and SEC regulations on crowdfunding remain undetermined at the time of the case.

Keywords

Innovation; Real Estate; Crowdfunding; Crowdsourcing; Digital Innovation; Commercial Real Estate; Online Platforms; Disruption; Transformation; Design; Assets; Equity; Disruptive Innovation; Innovation Strategy; Internet and the Web; Digital Platforms; Real Estate Industry; Latin America; New York (state, US); United States

Citation

Lakhani, Karim R., Katja Hutter, and Greta Friar. "Prodigy Network: Democratizing Real Estate Design and Financing." Harvard Business School Case 614-064, March 2014. (Revised January 2015.)
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About The Author

Karim R. Lakhani

Technology and Operations Management
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Related Work

    • March 2015
    • Faculty Research

    Prodigy Network: Democratizing Real Estate Design and Financing

    By: Karim R. Lakhani and Greta Friar
    • March 2014 (Revised January 2015)
    • Faculty Research

    Prodigy Network: Democratizing Real Estate Design and Financing

    By: Karim R. Lakhani, Katja Hutter and Greta Friar
Related Work
  • Prodigy Network: Democratizing Real Estate Design and Financing By: Karim R. Lakhani and Greta Friar
  • Prodigy Network: Democratizing Real Estate Design and Financing By: Karim R. Lakhani, Katja Hutter and Greta Friar
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