Venture capital firms operating in California will have to register with the state this month and submit newly required diversity reports by April 1 despite pushback from the sector.

Entrepreneurs who backed the 2023 law (SB 54) argue the measure will better illuminate barriers women and people of color face in accessing funding from an industry that directs tens of billions of dollars of investment in the state each year.

Companies founded by women received less than 2% of venture capital funding in the US during 2025, according to market intelligence firm PitchBook.

The law stands to …