Every day, the US municipal bond market raises $1 billion for public works projects—roads, bridges, schools, and the like. Most ordinary citizens know little or nothing about the financing of those projects, and they don’t have a clue about how they might take part in that process. Now a San Francisco-based start-up called Neighborly aims to disrupt the $3.6 trillion market for municipal bonds (“munis”) by making that market more accessible to community-minded individuals.

Buying bonds...

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