California's New Law Impacts Most VCs: What You Need to Know
Essential information about FIPVCC and tools to help your fund comply.
Jul 22, 2026 — 5 min read
Written by
Updated July 22, 2026
Where Things Stand: Enforcement Is Paused, and We've Weighed In
A lot has changed since we first published this article. Here's where things stand.
The DFPI Hit Pause
In March 2026, the DFPI announced it will suspend implementation and enforcement of the FIPVCC Law while it conducts a formal rulemaking. That means:
- You are not required to register or file a report right now. The April 1, 2026 deadline no longer applies.
- The DFPI plans to gather input from venture capital companies, industry associations, founders, and investors before proposing regulations. Once formal rulemaking begins, it must be completed within one year.
- The DFPI will notify registrants and subscribers when the process kicks off. You can subscribe to updates on the DFPI's VCC Reporting Program page.
This is a welcome development. The law's first filing season surfaced real implementation problems, and the rulemaking is the industry's chance to fix them.
We Submitted a Comment Letter
As part of the rulemaking process, the DFPI invited public comment (PRO 01-26). AngelList submitted a comment letter drawing on our experience supporting compliance across thousands of funds, SPVs, and syndicates, and on what we learned building FIPVCC.com, the free compliance tool we launched for the first filing season.
Our recommendations focused on making compliance workable without putting founders' privacy at risk:
- Permit secure third-party survey workflows. Many firms don't want to collect founders' sensitive demographic information directly, and they shouldn't have to. The rules should allow privacy-preserving tools that give founders the required survey opportunity while keeping individual responses out of the fund's hands.
- Allow consolidated workflows and reports across affiliated funds. Without this, the same founding team gets duplicative surveys from related vehicles (parallel funds, SPVs, feeders), and the same investment shows up in multiple public reports. One workflow per portfolio company, one consolidated report.
- Clarify the calculation mechanics. As written, some calculations could effectively force firms to store founder-level demographic data on their own systems, which is the exact privacy risk the law was designed to avoid. Compliance should be achievable through aggregate data and auditable evidence, rather than raw survey responses.
- Reduce re-identification risk in public reports. For solo founders and small founding teams, combining company identity, address, and investment amounts can make "anonymized" data anything but. We recommended state-level location and investment amount bands.
- Right-size recordkeeping. The five-year retention rules should require evidence of compliance, not a warehouse of sensitive founder responses.
What Should Fund Managers Do Now?
Nothing is due. But if this law applies to your fund, here's how to stay ahead of it:
- Subscribe to DFPI updates so you hear when rulemaking formally begins and when new deadlines are set.
- Keep your portfolio records current. Whatever the final rules look like, you'll need to know which companies you invested in and when.
- Don't purge your 2025 work. If you already registered or prepared survey data, hold onto it. It'll likely give you a head start under the final rules.
We'll update this article as the rulemaking progresses.
Originally published February 19, 2026
If you manage a venture capital fund, SPV, or syndicate with any connection to California, there's a new compliance requirement on your radar. California's Fair Investment Practices by Venture Capital Companies (FIPVCC) Law (SB 54, as amended by SB 164) is now in effect, and registration opens March 1, 2026.
Here's what you need to know.
What Is This Law?
California passed legislation requiring venture capital companies to collect and report demographic information about the founding teams of their portfolio companies. The goal is to increase transparency around diversity in VC funding by tracking aggregate data on race, ethnicity, gender identity, disability status, LGBTQ+ status, and veteran status of founders receiving venture capital investment.
The law is administered by the California Department of Financial Protection and Innovation (DFPI), and covered entities must register, distribute surveys to founders, and file annual reports.
Does This Apply to My Fund?
Probably. Your fund is likely covered if:
- You're a "venture capital company." This includes most VC funds, SPVs, and co-investment vehicles that qualify as a "venture capital fund" under the Investment Advisers Act or hold at least 50% of assets in VC investments with management rights.
- You primarily invest in startups. The law targets entities that "primarily engage" in investing in startup, early-stage, or emerging growth companies.
- You have a California nexus. This is a broad standard. You have a California nexus if you:
- Are headquartered in California
- Have a significant presence in California
- Invest in California-based companies
- Solicit or receive investments from California residents (even one California LP counts)
Given how many startups and LPs are based in California, most active VC funds will meet this threshold. We have built this questionnaire to help you make a determination on whether or not this is applicable to your fund.
Key Deadlines
| Deadline | Action Required |
|---|---|
| Beginning March 1, 2026 | Register with the DFPI |
| April 1, 2026 | Submit your first annual report (covering 2025 investments) |
What Do I Need to File?
Registration: Basic information about your fund—legal name, contact information, and a designated compliance contact.
Annual Report: You'll need to distribute the DFPI's standardized demographic survey to the founding team members of every company your fund invested in during the prior calendar year. Then you'll submit an aggregated, anonymized report summarizing the responses, along with investment-level data (amounts invested and principal place of business for each portfolio company).
Importantly, founder participation in the survey is completely voluntary. You cannot influence or encourage founders to respond in any particular way. If no one responds, you still file a report—you just indicate that no information was provided.
Who Counts as a "Founding Team Member"?
The law defines a founding team member as either:
- Someone who owned initial shares, contributed to the company's concept or development before shares were issued, and is not a passive investor; or
- The CEO or president of the company.
What's the Filing Fee?
$175 per fund or vehicle. If you manage multiple funds, the statute allows for consolidated reporting by an adviser to multiple entities, though DFPI guidance on this option is still limited.
What Happens If I Don't Comply?
The DFPI has a 60-day notice-and-cure period before penalties kick in. If you receive a notice of non-compliance, you have 60 days to fix the issue before facing any penalties. After that, fines can reach up to $5,000 per day.
That said, given the compressed timeline and the fact that the DFPI has yet to launch its registration portal, the regulatory posture appears to be relatively accommodating for good-faith compliance efforts.
How Do I Register?
Visit the DFPI's VCC Reporting Program page to access the registration portal, survey templates, and reporting forms.
How Can AngelList Help?
We're here to help. We recently launched FIPVCC.com which helps to conduct the outreach and generate the report you will need to file with the DFPI.
The Bottom Line
The California VCC reporting law is new, the timeline is tight, and there are still some open questions about implementation. But the core requirements are straightforward: register beginning March 1, send surveys to your 2025 portfolio company founders, and file your report by April 1.
Start now, and you'll be in good shape.
