Democratize Florida Capital Raising
Donation protected
Bring equity crowdfunding to Florida
Florida companies received only 1.8 percent of the nation’s total venture capital investments in 2014, according to MoneyTree. And the state’s 1.4 percent of venture capital investments in 2013 left Florida as No. 26 for investments based on per capita numbers. More importantly, these numbers do not speak to the insurmountable challenges for early stage companies to find capital, many of whom turn to their friends and family.
Fifteen other states have passed laws that support equity crowdfunding as a means of increasing the amount of capital available for their startups. Opening the capital raising market for startups and investors is helping bolster their economies.
Florida companies are missing out!
Founder Source is working to close this gap. And with our Crowdfund Florida campaign, we aim to democratize capital raising for Florida businesses.
Crowdfunding can provide the boost needed to get more companies to the first rung of the growth ladder.
Through these initiatives, and only with your help, can we make Florida a state that is able to encourage and sustain innovation for entrepreneurs.
If you are reading about this campaign, it is very likely that you are already part of or a supporter of Florida’s startup ecosystem. You know the challenges we face as a grassroots, bootstrapped community. This campaign is our tide coming in and will help all of us rise with it. We hope you see the benefits for us all and support our initiative.
Florida’s Equity Crowdfund Bill
To bring equity crowdfunding to Florida, Founder Source is pressing for the passage of comprehensive legislations drafted with input from entrepreneurs and feedback from Florida’s financial regulators.
The bill will allow Florida entrepreneurs, startups and companies to raise capital from and issue equity to small investors in Florida in offerings of up to $1 million.
The bill has been shaped to take into account SEC comments on similar bills in the U.S. and best practices from around country. To ensure sensible limits and to keep the process of raising funds simple, the following rules are included in the bill:
Companies raising capital under the bill’s provisions
- Must be based and do business in Florida
- Can raise funds in this format every 12 months
- Must raise funds through an intermediary (to insure compliance with laws)
- Must make appropriate disclosures
Investors
- Must be Florida residents
- Can invest, if their annual income and net worth is less than $100,000, the greater of $2,000, 5 percent of the annual income of the investor, or 5 percent of the net worth of the investor.
- Can invest, if their annual income or net worth is $100,000 or more, the greater of $100,000, 10 percent of the annual income of the investor, or 10 percent of the net worth of the investor.
Most of the framework that regulates investors originated in the 1930s. Over the 85 years since then, the rules have evolved to the point where ordinary investors are, for all practical purposes, shut out from early stage investment opportunities. By the same token, small businesses have few options for raising capital under existing laws. Founder Source believes that 2015 is the year for Florida to update these rules.
We believe that Florida’s equity crowdfund bill strikes a good balance between loosening existing constraints on the process of raising capital and retaining safeguards to protect the investing public.
Founder Source believes the passing of this bill and the resulting opportunities for Florida businesses will grow the state’s economy, drive competition and create new businesses and more jobs for the Sunshine State.
Read the bill, see its process and learn more about it here.
Background: The Jumpstart Our Business Startups Act Title III
Currently, federal law heavily restricts Florida companies from advertising, pitching, or receiving funding in return for equity from anyone that is not an accredited investor in the absence of a costly registered offering of securities.
Enacted in 2012, Title III of the JOBS Act contains language permitting equity crowdfunding. However, the SEC has found rule-making with respect to the Act’s equity crowdfunding provisions difficult, and there is no guarantee the SEC will be able to implement appropriate rules any time soon. As a result of this delay, many other states have passed their own equity crowdfunding legislation. Florida must act on behalf of its’ businesses to remain competitive.
What the Funds Will Be Used For
Founder Source is dedicating all of its resources to Florida’s equity crowdfunding bill. Soon, they will turn their full attention to educating Florida entrepreneurs and early stage companies about the new rules and ultimately assist with the capital raising process, which is what the funds from this campaign will support.
$15,000 Goal:
- Educational efforts surrounding equity crowdfunding
- Developing a statewide network to support opportunities for entrepreneurs to access capital
- Quarterly newsletter for entrepreneurs who are looking to access capital
Stretch Goals:
$25,000
- Develop a webinar series to educate entrepreneurs about new law, how to’s, best practices, and much more
$50,000
- Ability to introduce entrepreneurs to interested supporters
- Consulting with entrepreneurs
- Create educational materials for early stage businesses to help accelerate their growth
- Develop an in-depth educational series for entrepreneurs about raising capital
Meet the Team
Experienced starters, founders and advisors, Founder Source’s co-founders recognized a gap in funding available early stage startups and the ability to grow wealth in Florida. They created Founder Source to democratize capital raising and support founders in their efforts.
Meet Carlos, Matthew & Jonathan:
Carlos , a success entrepreneur, has been a leading advocate to bring a voice to Orlando’s tech community, and was a driving factor in creating the Orlando Tech Association and currently serves as the organization's president. The Orlando Tech Association is the leader in growing the region’s tech ecosystem by advocating for the tech community as well as inspiring collaboration between established businesses and startups. Carlos also launched Echo Interaction Group , a leading mobile app development firm, six years ago and has created over 70 mobile apps with clients ranging from startups to Fortune 500 companies.
Matthew currently serves as General Counsel to PowerDMS, an Orlando-based tech company, and counsels other tech companies in Central Florida. He previously served as General Counsel of Google's Channel Intelligence division, which was created as a result of Google's acquisition of Central Florida's Channel Intelligence, Inc. in 2013 for $125 million. Matthew has more than 20 years experience handling corporate matters and transactions as inside and outside legal counsel for high growth companies.
Jonathan has been a champion of Orlando’s tech community through his commitment to help in the creation of the Canvs coworking space and other projects. He also represented one of the world’s largest digital media entertainment companies in the drafting, negotiation and passage of legislation that created a $242 million film and digital media tax credit incentive program, which has been a leading economic driver in Florida’s digital media industry.
Founder Source is working diligently in Tallahassee to move the Crowdfund Florida bill through the legislative process during the current session. As founders, legal counsel and lobbyists, Founder Source’s co-founders have the expertise and passion needed to get this bill passed.
This is the right team to make the passing of the Florida equity crowdfunding legislation useful for the business community.
Next Steps
After Founder Source successfully leads the Florida equity crowdfunding legislation to passage, the company will work with Florida entrepreneurs and early stage companies to help them navigate the new laws to raise capital.
Our co-founders want to ensure equity crowdfunding is utilized correctly and to the best of its ability by Florida companies and investors. They look to offer trainings, events, materials and other education aids to assist in this process.
Disclosure
This campaign is an advocacy effort of Founder Source, a for profit company that develops products and services to assist entrepreneurs and early stage companies to launch and grow. Please become a sponsor and help us launch and grow, too.
Join us on Social Media
Facebook
Twitter
LinkedIn
YouTube
Florida companies received only 1.8 percent of the nation’s total venture capital investments in 2014, according to MoneyTree. And the state’s 1.4 percent of venture capital investments in 2013 left Florida as No. 26 for investments based on per capita numbers. More importantly, these numbers do not speak to the insurmountable challenges for early stage companies to find capital, many of whom turn to their friends and family.
Fifteen other states have passed laws that support equity crowdfunding as a means of increasing the amount of capital available for their startups. Opening the capital raising market for startups and investors is helping bolster their economies.
Florida companies are missing out!
Founder Source is working to close this gap. And with our Crowdfund Florida campaign, we aim to democratize capital raising for Florida businesses.
Crowdfunding can provide the boost needed to get more companies to the first rung of the growth ladder.
Through these initiatives, and only with your help, can we make Florida a state that is able to encourage and sustain innovation for entrepreneurs.
If you are reading about this campaign, it is very likely that you are already part of or a supporter of Florida’s startup ecosystem. You know the challenges we face as a grassroots, bootstrapped community. This campaign is our tide coming in and will help all of us rise with it. We hope you see the benefits for us all and support our initiative.
Florida’s Equity Crowdfund Bill
To bring equity crowdfunding to Florida, Founder Source is pressing for the passage of comprehensive legislations drafted with input from entrepreneurs and feedback from Florida’s financial regulators.
The bill will allow Florida entrepreneurs, startups and companies to raise capital from and issue equity to small investors in Florida in offerings of up to $1 million.
The bill has been shaped to take into account SEC comments on similar bills in the U.S. and best practices from around country. To ensure sensible limits and to keep the process of raising funds simple, the following rules are included in the bill:
Companies raising capital under the bill’s provisions
- Must be based and do business in Florida
- Can raise funds in this format every 12 months
- Must raise funds through an intermediary (to insure compliance with laws)
- Must make appropriate disclosures
Investors
- Must be Florida residents
- Can invest, if their annual income and net worth is less than $100,000, the greater of $2,000, 5 percent of the annual income of the investor, or 5 percent of the net worth of the investor.
- Can invest, if their annual income or net worth is $100,000 or more, the greater of $100,000, 10 percent of the annual income of the investor, or 10 percent of the net worth of the investor.
Most of the framework that regulates investors originated in the 1930s. Over the 85 years since then, the rules have evolved to the point where ordinary investors are, for all practical purposes, shut out from early stage investment opportunities. By the same token, small businesses have few options for raising capital under existing laws. Founder Source believes that 2015 is the year for Florida to update these rules.
We believe that Florida’s equity crowdfund bill strikes a good balance between loosening existing constraints on the process of raising capital and retaining safeguards to protect the investing public.
Founder Source believes the passing of this bill and the resulting opportunities for Florida businesses will grow the state’s economy, drive competition and create new businesses and more jobs for the Sunshine State.
Read the bill, see its process and learn more about it here.
Background: The Jumpstart Our Business Startups Act Title III
Currently, federal law heavily restricts Florida companies from advertising, pitching, or receiving funding in return for equity from anyone that is not an accredited investor in the absence of a costly registered offering of securities.
Enacted in 2012, Title III of the JOBS Act contains language permitting equity crowdfunding. However, the SEC has found rule-making with respect to the Act’s equity crowdfunding provisions difficult, and there is no guarantee the SEC will be able to implement appropriate rules any time soon. As a result of this delay, many other states have passed their own equity crowdfunding legislation. Florida must act on behalf of its’ businesses to remain competitive.
What the Funds Will Be Used For
Founder Source is dedicating all of its resources to Florida’s equity crowdfunding bill. Soon, they will turn their full attention to educating Florida entrepreneurs and early stage companies about the new rules and ultimately assist with the capital raising process, which is what the funds from this campaign will support.
$15,000 Goal:
- Educational efforts surrounding equity crowdfunding
- Developing a statewide network to support opportunities for entrepreneurs to access capital
- Quarterly newsletter for entrepreneurs who are looking to access capital
Stretch Goals:
$25,000
- Develop a webinar series to educate entrepreneurs about new law, how to’s, best practices, and much more
$50,000
- Ability to introduce entrepreneurs to interested supporters
- Consulting with entrepreneurs
- Create educational materials for early stage businesses to help accelerate their growth
- Develop an in-depth educational series for entrepreneurs about raising capital
Meet the Team
Experienced starters, founders and advisors, Founder Source’s co-founders recognized a gap in funding available early stage startups and the ability to grow wealth in Florida. They created Founder Source to democratize capital raising and support founders in their efforts.
Meet Carlos, Matthew & Jonathan:
Carlos , a success entrepreneur, has been a leading advocate to bring a voice to Orlando’s tech community, and was a driving factor in creating the Orlando Tech Association and currently serves as the organization's president. The Orlando Tech Association is the leader in growing the region’s tech ecosystem by advocating for the tech community as well as inspiring collaboration between established businesses and startups. Carlos also launched Echo Interaction Group , a leading mobile app development firm, six years ago and has created over 70 mobile apps with clients ranging from startups to Fortune 500 companies.
Matthew currently serves as General Counsel to PowerDMS, an Orlando-based tech company, and counsels other tech companies in Central Florida. He previously served as General Counsel of Google's Channel Intelligence division, which was created as a result of Google's acquisition of Central Florida's Channel Intelligence, Inc. in 2013 for $125 million. Matthew has more than 20 years experience handling corporate matters and transactions as inside and outside legal counsel for high growth companies.
Jonathan has been a champion of Orlando’s tech community through his commitment to help in the creation of the Canvs coworking space and other projects. He also represented one of the world’s largest digital media entertainment companies in the drafting, negotiation and passage of legislation that created a $242 million film and digital media tax credit incentive program, which has been a leading economic driver in Florida’s digital media industry.
Founder Source is working diligently in Tallahassee to move the Crowdfund Florida bill through the legislative process during the current session. As founders, legal counsel and lobbyists, Founder Source’s co-founders have the expertise and passion needed to get this bill passed.
This is the right team to make the passing of the Florida equity crowdfunding legislation useful for the business community.
Next Steps
After Founder Source successfully leads the Florida equity crowdfunding legislation to passage, the company will work with Florida entrepreneurs and early stage companies to help them navigate the new laws to raise capital.
Our co-founders want to ensure equity crowdfunding is utilized correctly and to the best of its ability by Florida companies and investors. They look to offer trainings, events, materials and other education aids to assist in this process.
Disclosure
This campaign is an advocacy effort of Founder Source, a for profit company that develops products and services to assist entrepreneurs and early stage companies to launch and grow. Please become a sponsor and help us launch and grow, too.
Join us on Social Media
YouTube
Organizer
Carlos Carbonell
Organizer
Orlando, FL
