Bill > A00758

This bill establishes the Diversity in Investment Act, which requires certain venture capital companies (called "covered entities") to report detailed diversity information about the founding teams of businesses they invest in. Specifically, covered entities must collect voluntary survey data from founding team members about their gender, race, ethnicity, disability status, veteran status, and LGBTQ+ identity, and then report aggregate statistics annually. The bill defines a "covered entity" as a venture capital company that primarily invests in startup or emerging companies, has a presence in New York, and meets other specific criteria. Starting March 1, 2028, these companies must submit reports to the Secretary of State detailing the percentage of their investments in businesses primarily founded by diverse team members, the total investment amounts, and other key metrics. The reports must be made publicly accessible on the company's website and the state's website. The bill also establishes enforcement mechanisms, allowing the Attorney General to seek injunctions and impose civil penalties ranging from $1,000 to $5,000 per day for non-compliance, with the penalty amount determined by the company's total assets. The goal of the legislation is to increase transparency about diversity in venture capital funding and encourage more investment in businesses led by underrepresented founders.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A758