Launching a new technology company in Florida requires business owners to navigate a challenging set of economic and regulatory landscapes.

That point is hammered home in the online gambling industry, with the local market operating differently from many other states.

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However, the broader sportsbook and online casino sector is tightly regulated, which makes Florida a tricky state for tech start-ups to operate in.

Despite this, it is regarded as one of the most attractive states for business in the United States. Read on as we take a closer look.

Favourable tax structure makes Florida an attractive proposition

Florida’s business economy is heavily reliant on small businesses, with more than 95 percent of the companies operating in the state falling into that category.

The state’s favourable tax structure makes it an attractive proposition for start-ups, particularly with regards to exemptions on new machinery and equipment expenses.

Income tax, unemployment insurance tax and property taxes are low, further creating a favourable landscape for technology start-ups.

Florida is able to keep it tax rates low due to the hospitality tax revenue generated by its tourism businesses, including theme parks, hotels and resorts.

Investment capital is available in Florida

The state provides access to significant investment capital from venture capitalists and angel investors. However, it is worth noting that there are gaps in the system.

Many private investors previously focused their efforts on the other regions in the US, but have increasingly pivoted towards the Sunshine State over the past few years.

Florida is now home to several innovative economic hubs which are considered incubators for start-ups and innovation. 

“The idea that you have to be in huge metropolitan areas like New York or Silicon Valley for access to capital is overblown,” said Andy Latimer, founder of Bluewater Media.

“The stable business environment in Florida makes business here ripe for investment. Also, the walls of access to large markets have been broken down by technology.”

Technology start-ups must navigate some tricky challenges

Many venture capitalists and angel investors are selective about the investments they make in start-ups, especially in the technology sector.

Some founders need smaller investments to bring their idea to fruition. Getting that first step on the ladder gives them a greater chance of securing future investment.

The Florida Institute for the Commercialisation of Florida Technology, in partnership with Florida Funders, recently launched a new scheme to fill the gap.

They have launched Florida First Check, a new pre-seed investment strategy providing early-stage technology companies with investments ranging from $75,000 to $100,000.

This creates an exciting new pathway for Florida start-ups to receive an institutional investment much earlier in their development.

“Florida has no shortage of brilliant founders - what's been missing is a reliable first cheque that keeps them building here instead of relocating for capital,” said Rafael Lohner, Executive Director of The Florida Institute.

“Partnering with Florida Funders to manage Florida First Check gives our state's earliest-stage companies an institutional partner from day one.

“And when a company builds here, the high-wage jobs and economic impact it creates stay here - that's the Institute's mission at work.”

The final word

The new scheme will undoubtedly help to plug a funding gap, further strengthening the notion that Florida is an attractive market for start-ups.

The state has worked hard in recent years to establish a thriving innovation economy. Those efforts are now paying dividends.