The Florida Crowd Finance Association held its first meeting this week in Coral Gables in support of a bipartisan initiative filed in the Florida House and Senate authorizing certain forms of “crowd financing” between Florida-based entities.
Florida State Representative Bryan Nelson (R-31) and Florida State Senator Jeff Clemens (D-27) are the sponsors of HB 1299 and SB 1596, respectively, authorizing equity and debt funding of Florida businesses by Florida-based financial entities.
If adopted, the legislation will allow online crowd-financing platforms to register and conduct business in the state of Florida within the guidelines set out in the bill. These would include requirements that both investors and businesses reside within the state and that certain consumer protections are in place.
The legislation was initiated by Miami-based Funding Wonder, a crowd-lending platform designed to match companies seeking to borrow funds under certain terms and conditions with individuals wishing to lend funds under the same or similar terms. Crowd-funding has gained attention worldwide, and several states have already made moves to allow intrastate crowd-financing.