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The Florida Statutes

The 2018 Florida Statutes

Title XIX
PUBLIC BUSINESS
Chapter 288
COMMERCIAL DEVELOPMENT AND CAPITAL IMPROVEMENTS
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F.S. 288.96255
288.96255 Florida Technology Seed Capital Fund; creation; duties.
(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.
(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 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‚Äôs 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. 288.106(2); 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.
(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.
History.s. 2, ch. 2013-120; s. 6, ch. 2018-139.