Equity Crowdfunding Comes to Florida — Or Has it?
Florida Bar Journal, Volume 89, No. 10, 2015
13 Pages Posted: 16 Dec 2015 Last revised: 4 Jan 2016
Date Written: December 1, 2015
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.
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