Bill > S05636

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 annually submit a report to the Secretary of State detailing the demographic characteristics of founding team members, including gender, race, ethnicity, disability status, veteran status, and LGBTQ+ identity. The reporting is voluntary for founding team members, who must be surveyed after an investment agreement is executed. The bill defines a "covered entity" as a venture capital company with significant connections to New York, either through headquarters, operations, investments, or investor base. The reports must be made publicly accessible on the company's website and submitted to the state, with the goal of increasing transparency about diversity in venture capital investments. The bill includes 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 varying based on the company's total assets. The reporting requirement will begin on March 1, 2028, and the bill aims to provide insight into the representation of diverse founding teams in venture capital investments.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S5636