Four crowdfunding platforms have launched a new group to promote the industry and draft ethical guidelines "to help establish a high degree of integrity."

The Association of Online Investment Platforms was "created with the intent of educating both investors and issuing-firms on the opportunities available in investment crowdfunding," according to a statement from the group. The association also is seeking to establish a more cogent voice for what is founders call "a very fragmented industry."

"The AOIP was formed in an effort to improve communication and trust between the general public, private companies, online investment platforms, and our regulators and legislators so that collectively we can someday truly democratize access to private capital and investments," said Youngro Lee, inaugural chair of the association and CEO of the crowdfunding platform NextSeed.

NextSeed, MicroVentures, Republic and SeedInvest are the founding members of AOIP. The association lists no staff but has hired New York City-based attorney Doug Ellenoff as lead counsel.

The association has launched a website and published a code of ethics for the industry. The group also plans to engage with regulators and policymakers "to develop fair and transparent practices in the investment crowdfunding sector."

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