As Florida’s Economic Diversity Grows, the Need to Access Capital Heightens
Countless articles have recently surfaced detailing Florida's economic diversification, growth and success. These have revealed what Floridians have known for a long time: Florida is not only a beautiful place to live, it is home to arguably the world's most dynamic economy.
That is not by accident but because of strong leadership and a wise investment in working together to create a potent incubator for economic growth. Let me explain.
Let's examine Florida's economy as if it were a sovereign country, not a state. Florida is tied with Mexico as the 15th largest economy in the world based on a GDP of $1.2 trillion. In the last 10 years, the percentage of GDP growth has increased from .8% to 8.4% in 2021. Florida is currently home to 22.5 million residents, outpacing the nation in population growth, and is on track to welcome 4 million new residents and climb to the 10th largest economy in the world by 2030.
Though Florida's population growth has been consistently strong, our lack of economic diversity inhibited the stable economic growth we yearned for. The historically cyclical tourism, real estate, and agriculture industries have been the economy's overwhelming driving force, leaving our economy vulnerable during recessionary economic times. However, the days of people referring to Florida as a "boom or bust state” are long gone.
Due to Florida's multi-decade pro-business political leadership, we have set a course for economic growth and diversification that has been directly supported by and aligned with the state's venture capital and private equity industries. VC investment exploded in the last 10 years — 1300%, to be exact — from $1.6 billion invested in 2012 to $20.8 billion in 2020.
In partnership with The Florida Venture Forum, Weatherford Capital recently commissioned a study through the Washington Economics Group on the impact of VC and PE investment in Florida. The results from the study revealed several stunning realities regarding its role over the last 10 years. Notably, the total economic impact of VC and PE on Florida was $85.4 billion, 67% (~$57B) of which was in knowledge-based services, which includes technology and other higher-paying professional sectors. Investment of that caliber into those previously untapped industries has undoubtedly fueled economic diversity and growth.
Access to capital for Florida businesses is essential for creating jobs, empowering entrepreneurs, generating opportunities for innovation, and creating prosperity in our state. According to the same study, VC and PE investments between 2012-2021 accounted for:
465,000 new jobs
$26.8 billion in household income
$43.8 billion of value added to Florida's GDP
$9.8 billion in federal, state and local fiscal tax collections
These data points represent life-changing implications for thousands of families across Florida with new, higher-paying jobs. The simple reality is that capital goes where treated best, and no one treats it better than Florida.
—Will Weatherford