Covered entities include VCCs (per 10 CCR § 260.204.9) holding ≥50% assets in venture capital investments, qualifying as venture capital funds under the Investment Advisers Act or VC operating companies under ERISA, that are headquartered in California, have significant presence/operations there, invest in California-based firms, or solicit/receive investments from California residents; even a single such investment triggers coverage.[1][2][4][5][6] Reports cover gender identity, race, ethnicity, disability, LGBTQ+ status, veteran status, California residency, and investment totals/dollars in "diverse-founded" businesses (where >50% of surveyed founders identify as women, nonbinary, racial/ethnic minorities, disabled, veterans, or LGBTQ+), based on voluntary surveys sent to founders.[2][3][7][9]
The law addresses VC diversity gaps by promoting transparency without quotas. Timeline: Passed 2023, amended 2024; DFPI released survey/report templates recently, with registration portal pending; initial deadlines March 1 (registration) and April 1, 2026 (2025 data report).[1][3][4][7][8] Newsworthy now as deadlines approach in weeks, urging broad VC compliance amid DFPI infrastructure rollout.[2][3][8]