Press Release

Gov. Newsom Signs Sen. Skinner’s Bill to Boost Investment in Women- and Minority-Owned Startups

California State Capitol

Gov. Gavin Newsom has signed Sen. Skinner’s legislation, SB 54, which brings transparency to venture capital investments in California and is designed to help more women- and minority-owned startups access vital VC funding. SB 54 is the first such transparency measure in the nation.

“California has landmark laws on pay inequity and the lack of diversity in both the workplace and the boardroom. With Governor Newsom’s signing of SB 54, California is extending its nation-leading efforts to expand equity by bringing transparency to venture capital investment decisions, with the goal of helping more women- and minority-owned startups access the VC lifeline upon which entrepreneurs depend,” said Sen. Skinner, D-Berkeley.

SB 54, Investing in Equity, won overwhelming approval in both houses of the Legislature. It takes effect in 2025.

SB 54 is aimed at improving diversity in venture capital investments by:

  • Requiring venture capital firms to report annually on the diversity of their investments starting March 1, 2025;
  • Outlining reporting requirements and procedures, including data collection through a standardized survey while protecting individual privacy; and
  • Ensuring that the Civil Rights Department of the Business, Consumer Services and Housing Agency makes the reports received readily accessible, easily searchable, and easily downloadable on its website.

To learn more about SB 54, please click here.

 

Sen. Nancy Skinner represents the 9th Senate District and is chair of the Senate Budget Committee and the California Legislative Women’s Caucus.