News Summary

• Last night California Governor Gavin Newsom signed into law Senate Bill which will require venture capital firms in the state to annually report the diversity of the founders they are backing.
• This is the United States first piece of legislation that aims to increase diversity within the venture capital landscape.
• The law will go into effect on March and will require firms to collect and release their diversity data to the public.
• Those who fail to comply with the new law may face a penalty as decided by the courts.
• Tech policy advocates are thrilled that the bill has been passed and hope that it will provide more transparency into how venture capital dollars are allocated.