SB 54: Investment Community’s New DEI Reporting Requirements (Daily Journal article)

For the investment community, it’s time to start gathering your data…

As of March 1, 2025, you’ll be required to report demographic information regarding the diversity of your portfolio investments. While it’s a California law (SB 54), the requirements extend to some entities based outside of California that have investment activity in California, as well as for California entities with investments outside of the state. In addition to your typical VCs, the types of entities impacted will include non-traditional venture capital funds, including private equity, family offices, trusts and even some accelerators.

Governor Gavin Newsom admitted that there will be a steep learning curve in the execution of this new law, and he anticipates making refinements to its implementation through the budgeting process. We’ll be watching for those developments. In the meantime, you can learn more about the data to be gathered and the privacy concerns some have raised in the article that Mitzel Group Partner Lisa Liu penned for the Daily Journal <<here>> (subscription required). Or give us a call if you’d like to discuss how these changes might impact you.