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California Pauses Enforcement of VC Diversity Reporting Law, Lifts April 1 Deadline

DFPI will start formal rulemaking later this year to develop clear, workable regulations following industry feedback.

Overview

  • Implementation and enforcement of the Fair Investment Practices by Venture Capital Companies Law are suspended until final regulations are adopted.
  • Covered entities are not required to register or submit reports by April 1, 2026, removing the immediate filing pressure.
  • DFPI plans to solicit input from venture firms, founders, investors and industry groups before launching formal rulemaking.
  • Once formal rulemaking begins, California law requires the process to be completed within one year, with DFPI pledging to notify registrants and subscribers.
  • The pause leaves open questions, including when compliance will resume and whether investments made in 2025 will ultimately need to be reported.