The Florida legislature passed crowdfunding legislation and the bill is being transferred to the desk of Governor Rick Scott where it was anticipated to be signed into law by May 2015. This is the second time Florida tried to legalize equity Florida crowdfunding as an official bill, they tried the process back in 2014, only to encounter blockage by partisan interests. This newly passed exemption means that an investor no longer must be “accredited” earning $200k or more with a net worth of $1ml or higher – a label that has eliminated many Florida residents in the past.
Sally Outlaw, the President of the Florida Crowdfinance Association and CEO of peerbackers, spoke about the upcoming law;
“I’m encouraged to see the legislature embrace new forms of finance to ignite entrepreneurial innovation in our state,” she said. “This bill not only creates more capital opportunities for small businesses but also provides Florida residents a chance to invest in emerging companies in their own communities.”
These new regulations will let Florida crowdfunding portals to conduct business in the state of Florida. The bill requires that both investors and businesses reside within the state and also mandates specific consumer protections. With the passing of this legislation, Florida will join a growing list of roughly 16 other states that have passed their own Intrastate Crowdfunding laws.
“This bill not only creates more capital opportunities for small businesses but also provides Florida residents a chance to invest in emerging companies in their own communities,” said Florida based Funding Wonder CEO Michael Mildenberger
For a long time, federal and state regulations have made it extremely difficult for companies to raise working capital from investors other than friends and family, or high net worth individuals. Florida crowdfunding breaks through those barriers by allowing businesses to use the internet to raise money from the general public, limited to residents within the state of Florida, and this drastically increases company access to potential investors. State residents also stand to profit from this new legislation, by allowing them to invest in vetted deals within their hoe state, and spread their investment dollars outside traditional 401s and Wall Street.