The California Fair Investment Practices by Venture Capital Companies Act (FIPVCC) (Cal. Corp. Code § 27500), enacted in 2023 and amended in 2024, establishes significant new reporting obligations for venture capital funds and their advisers.
Key Compliance Dates and Requirements
- Registration Required: Beginning March 1, 2026, covered venture capital firms and advisers (entities that invest in startup, early stage or emerging growth companies) must register with the California Department of Financial Protection and Innovation (DFPI) and provide detailed identification and contact information.
- Annual Demographic Reporting: By April 1, 2026 — and annually thereafter — covered entities, among other items, must report to DFPI aggregated demographic data regarding the founding teams of portfolio companies invested in during the prior year.
- Who Is Covered? The FIPVCC applies broadly: even a minimal nexus (such as a single California limited partner or investment in a California company) can trigger these reporting obligations. Both in-state and out-of-state funds may be affected.
- Potential Compliance Burden: The law may require substantial adjustments to your data collection, compliance, and reporting processes.
Next Steps
Funds and advisers should immediately assess their California connections and begin preparations for new registration and reporting processes. Failure to comply could result in regulatory scrutiny or penalties.
For more details or assistance with FIPVCC compliance planning, please contact your CBIZ Alternative Investments Group team.
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