Equity Crowdfunding Comes to Florida — Or Has it?

Florida Bar Journal, Volume 89, No. 10, 2015

University of Florida Levin College of Law Research Paper

13 Pages Posted: 16 Dec 2015 Last revised: 4 Jan 2016

See all articles by Stuart R. Cohn

Stuart R. Cohn

University of Florida Levin College of Law

Date Written: December 1, 2015

Abstract

Effective October 1, 2015, Florida has joined the growing number of states that have adopted a “crowdfunding” registration exemption. The exemption is intended to permit small businesses to raise capital through Internet and broad-based marketing without the costs and rigors of a state securities registration process. The exemption essentially lifts the ban on widespread solicitation of potential investors that applies to nonregistered securities offerings. The exemption’s basic elements are 1) a maximum offering amount; 2) limitations on the amount of securities that a nonaccredited investor can purchase; 3) mandatory use of a licensed dealer or intermediary; and 4) escrowing of investor proceeds until a minimum target amount has been raised. These and other specific requirements are discussed in greater detail in this article.

Suggested Citation

Cohn, Stuart R., Equity Crowdfunding Comes to Florida — Or Has it? (December 1, 2015). Florida Bar Journal, Volume 89, No. 10, 2015, University of Florida Levin College of Law Research Paper, Available at SSRN: https://ssrn.com/abstract=2703608

Stuart R. Cohn (Contact Author)

University of Florida Levin College of Law ( email )

P.O. Box 117625
Gainesville, FL 32611-7625
United States

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