Fla. Stat. § 288.96255
Florida Technology Seed Capital Fund; creation; duties
Redline — January 1, 2013 → current.View current text →
Current — January 1, 2023
As of January 1, 2013
(1) The Institute for the Commercialization of Public Research shall create the Florida Technology Seed Capital Fund as a corporate subsidiary. The purpose of the fund is to foster greater private-sector investment funding, to encourage seed-stage investments in start-up companies, and to advise companies about how to restructure existing management, operation, or production to attract advantageous business opportunities. The proceeds of a sale of the equity held by the fund shall be returned to the fund for reinvestment.
(1) The Institute for Commercialization of Florida Technology shall create the Florida Technology Seed Capital Fund as a corporate subsidiary. The purpose of the technology fund is, without any financial assistance or specific appropriations from the state, to foster greater private-sector investment funding, to encourage seed-stage investments in start-up companies, and to advise companies about how to restructure existing management, operation, or production to attract advantageous business opportunities. The net profits of the proceeds of each sale or liquidation of assets or portions of the assets of the investment portfolio must be returned to the technology fund for reinvestment after payment of the applicable costs, professional fees, expenses, fees pursuant to s. 288.9625(12)(b), and disbursement to private investors pursuant to paragraph (6)(e).
(2) The institute shall administer the Florida Technology Seed Capital Fund.
(2) The institute shall administer the Florida Technology Seed Capital Fund.
(3) The institute shall employ professionals who have both technical and business expertise to manage fund activity. The institute shall establish an investor advisory board comprised of venture capital professionals and early-stage investors from this and other states who shall advise and guide the fund management and make funding recommendations. Administrative costs paid out of the fund shall be determined by the investor advisory board.
(3) The institute shall employ a private fund manager pursuant to s. 288.9625 to manage the investment portfolio and technology fund activity. The private fund manager shall advise the institute and guide the management of the technology fund and make funding recommendations, provided that capital for investment is available in the technology fund. The private fund manager shall receive reasonable fees consistent with industry practices for performing due diligence and an investment closing fee paid out of the technology fund at the closing of each investment in addition to reasonable attorney fees, other fees prescribed in s. 288.9625(12)(b), and other costs in connection with making an investment.
(4) The institute shall use a thorough and detailed process that is modeled after the best practices of the investment industry to evaluate a proposal. In order to approve a company for investment, the institute must consider if: (a) The company has a strong intellectual property position, a capable management team, readily identifiable paths to market or commercialization, significant job-growth potential, the ability to provide other sources of capital to leverage the state’s investment, and the potential to attract additional funding; (b) The company has been identified by a publicly funded research institution; (c) The start-up company is a target industry business as defined in s. 288.106(2); (d) The company has been identified by an approved private-sector lead investor who has demonstrated due diligence typical of start-up investments in evaluating the potential of the company; and (e) The advisory board and fund manager have reviewed the company’s proposal and recommended it.
(4) The private fund manager shall use a thorough and detailed process that is modeled after investment industry practices to evaluate a proposal. In order to approve a company for investment, the private fund manager, on behalf of the institute, must consider if: (a) The company has a strong intellectual property position, a capable management team, readily identifiable paths to market or commercialization, significant job-growth potential, the ability to provide other sources of capital to leverage the state’s investment, and the potential to attract additional funding; (b) The private fund manager has had an opportunity to complete due diligence to its satisfaction; (c) The company is a target industry business as defined in s. 288.005; and (d) An approved private-sector lead investor who has demonstrated due diligence typical of start-up investments in evaluating the potential of the company has identified the company.
(5) Funds from the technology fund may be invested if the institute approves a company and the initial seed-stage investment.
(b) Additional seed funds may be invested in a company if approved by the institute. The cumulative total of investment in a single company may not exceed $500,000. Any additional investment amount requires a two-to-one, private-sector match of investment.
(6) The institute may: (a) Provide a company with value-added support services in the areas of business plan development and strategy, the preparation of investor presentations, and other critical areas identified by the institute to increase its chances for long-term viability and success; (b) Encourage appropriate investment funds to become preapproved to match investment funds; (c) Market the attractiveness of the state as an early-stage investment location; and (d) Collaborate with state economic-development organizations, national associations of seed and angel funds, and other innovation-based associations to create an enhanced state entrepreneurial ecosystem.
(6) The institute or private fund manager may: (a) Provide a company with value-added support services in the areas of business plan development and strategy, the preparation of investor presentations, and other critical areas identified by the private fund manager to increase its chances for long-term viability and success; (b) Encourage appropriate investment funds to become preapproved to match investment funds; (c) Market the attractiveness of the state as an early-stage investment location; (d) Collaborate with state economic-development organizations, national associations of seed and angel funds, and other innovation-based associations to create an enhanced state entrepreneurial ecosystem; and (e) Transfer any portion of the assets of the investment portfolio, on behalf of the institute, into a private fund or special purpose vehicle, receive additional private investment in the private fund or special purpose vehicle, manage the private fund or special purpose vehicle, and distribute to the technology fund and the private investors the respective pro rata portion of any net profits from the sale or liquidation of the assets of such private fund or special purpose vehicle.
(7) The institute shall annually evaluate the activities and results of the funding, taking into consideration that seed investment horizons span from 3 to 7 years.
Official source: Online Sunshine (Florida Legislature). Reproduced from public-domain Florida statutes; confirm against the official source for the current text. Not legal advice.