How Can Equity Crowdfunding Help Orlando Businesses?

Orlando business insurance

In a recent post we discussed how to finance a new small business where we mentioned private investors and venture capitalism. One financing method we did not mention is crowdfunding, because until now this option has been limited for Florida business owners.

Two new Florida Senate bills that will legalize equity crowdfunding, were recently approved by state lawmakers and currently await Governor Rick Scott’s signature. Senate Bill 914 and House Bill 275 could be great news for up-and-coming Florida based companies, as the legislation could make it much easier for budding businesses to secure the funding they need to progress. For those unfamiliar with the term, equity crowdfunding is a means of securing investment funds that allows companies to accept monetary contributions from investors in exchange for company stock.

Crowdfunding can be a great way for Orlando businesses to secure the vital funds they need to grow and cultivate a young business. According to estimates for 2014, crowdfunding was projected to add at least 270,000 jobs and inject more than $65 billion into the global economy last year. An infographic published in 2014 by crowdfunding platform Fundable shows that for every dollar invested through crowdfunding, leads to $6.36 in revenue. Experts predict that by 2020, crowdfunding will generate over $3.2 trillion in economic value per year.

The value of crowdfunding is real, and Orlando business owners will soon have the flexibility and opportunity to make such solicitations throughout the state of Florida. This can be a great opportunity for businesses looking to expand.

Beginning a new business, or expanding a current venture, can be exciting. However, new business opportunities also come with increased risk exposures. Whether you are current Central Florida business owner looking to grow your operation, or an entrepreneur looking to start a new venture, the right risk management strategy and Orlando business insurance portfolio is vital. At Newman Crane we understand the hard work and dedication it takes to build a business, and the severity of losing those hard earned assets in a lawsuit. That’s why we are committed to providing quality and affordable insurance in Orlando FL. For more information about us and the specialty industries we serve, contact us at (407) 859-3691.