California enacted SB 164 in 2024, replacing SB 54 and maintaining most of its original requirements with some key amendments. This law is designed to promote transparency in venture capital funding by requiring firms with a California nexus to report aggregated demographic data on the founding teams of their portfolio companies. Oversight now falls under the Department of Financial Protection and Innovation (DFPI), and the reporting deadline has been extended to April 1, 2026.
SB 164 applies to venture capital firms primarily engaged in financing startups or early-stage companies that have a connection to California, such as headquarters, operational presence, investments, or investors in the state. Covered entities must register with the DFPI, distribute anonymized demographic surveys to founding team members, and submit annual reports including aggregated demographic data, investment amounts, and company locations. These reports will be published by the DFPI, and noncompliance can result in significant penalties.
The deadline for registration and reporting is approaching, with registration due by March 1, 2026, and the first report due by April 1, 2026.