Overview
A new California law takes effect April 1, 2026, requiring registration by “covered entities” that make investments in start-up, early stage, or emerging growth companies and have a nexus with the state of California. “Covered entities” are required to send workplace demographic surveys to their portfolio companies and to report aggregated results to the state. Although the law is aimed at venture capital investments, it is broadly worded and may cover a range of investment entities and may capture entities not located in California and not investing in California companies.
Watch the discussion with McDermott Partners Marc Elovitz and Aroma Sharma on common fund and investment structures affected and key compliance requirements.