Venture capital firms will be required to report annually on the diversity of the founders of the businesses they finance under a California law Gov. Gavin Newsom (D) signed Sunday.
The new law (S.B. 54) applies to firms based in California, investing in the state, or receiving funds from state residents.
Backers say they hope the measure will prod the sector to extend more funding to female entrepreneurs amid long-running concerns the industry’s often crucial early-stage investments flow largely to businesses founded by men.
“When you look at the data of which startups get funded from the lifeline ...
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