California Enacts New Venture Capital Registration and Reporting

California Enacts New Venture Capital Registration and Reporting Requirement Effective March 1, 2026

State of California has implemented a new regulatory framework that introduces mandatory registration and annual reporting requirements for certain venture capital companies with a California nexus, beginning in 2026. 

The new rule, formally titled the Fair Investment Practices by Venture Capital Companies Law (“FIPVCC” or the “Law”)—was enacted through California Senate Bill 54 (2023) and amended by Senate Bill 164 (2024). Administration and enforcement of the Law is handled by the California Department of Financial Protection and Innovation (DFPI).

Overview of the Law

The Law establishes a registration and reporting regime intended to increase transparency regarding venture capital investment activity. Covered entities are required to register with the DFPI and to annually report aggregated, anonymized demographic information that is voluntarily provided by the founding teams of companies in which they invested during the prior calendar year. The DFPI has launched a dedicated Venture Capital Company (VCC) Reporting Program, which includes standardized survey and reporting templates that covered entities must use. Reports submitted to the DFPI will be made publicly available.

Entities Potentially Within Scope

The Law applies to “Covered Entities,” which generally include entities that: 

  • Meet California’s regulatory definition of a venture capital company; 
  • Are primarily engaged in investing in or providing financing to startup, earlystage, or emerging growth companies; and 
  • Have a California nexus. 

A California nexus may exist even where an entity is not physically located in California. For example, investing in Californiabased companies or soliciting or receiving capital from California residents may bring an entity within scope. As a result, the Law may apply to outofstate funds, special purpose vehicles, and other investment entities, depending on their activities.   

Key Compliance Dates 

  • March 1, 2026 – Registration with the DFPI is required for Covered Entities 
  • April 1, 2026 – First annual report due (covering qualifying investments made during calendar year 2025) 
  • Annually thereafter – Updated registration information (if applicable) and annual reporting are required 

Information Required to Be Submitted to the DFPI

Under the Law and DFPI guidance, Covered Entities must submit the following information: 

Registration Information 

Beginning March 1, 2026, Covered Entities are required to provide the DFPI with identifying and contact information, including: 

  • Legal name of the Covered Entity 
  • Name, title, and email address of the designated point of contact 
  • Business email address and telephone number 
  • Physical address 
  • Website address (if any) 

Covered Entities are required to update this information in connection with annual reporting if changes 

Annual Demographic Data Reporting

On an annual basis, Covered Entities must submit an aggregated and anonymized report containing demographic information that is voluntarily provided by founding team members of portfolio companies that received venture capital investments during the prior calendar year. 

The DFPImandated standardized survey collects information in the following categories: 

  • Gender identity 
  • Race and ethnicity 
  • LGBTQ+ identification 
  • Disability status 
  • Veteran status 
  • California residency status 

Participation by founding team members is voluntary. Individuallevel responses are not submitted to or published by the DFPI. Only aggregated, anonymized data is reported. 

Public Disclosure 

Reports submitted to the DFPI under the VCC Reporting Program will be published by the DFPI and made available to the public. 

Authoritative Resources 

For additional information, the following official resources provide the controlling legal and regulatory guidance: 

 

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