California Postpones Diversity Reporting Requirements for Venture Capital Firms

The state’s decision comes after a group of venture capital firms asked Governor Gavin Newsom to reconsider the law, citing concerns about the burden it would place on their industry. The law, which was set to take effect in January, required firms to report the demographics of startup founders they backed. In 2021, the deadline for reporting was also delayed due to concerns from investors and the venture capital community.