Benjamin Black

📢 Attention Venture Capital Fund Managers: New California Transparency & Reporting Law You Must Know - Deadlines Looming! 📊 California has ushered in a first-of-its-kind transparency regime that will meaningfully impact VC firms with a nexus to the state — no matter where you’re headquartered. Under the Fair Investment Practices by Venture Capital Companies Act, covered entities must register and report demographic data on the founding teams of companies in which they invested during 2025 - beginning this year. 🔎 Here’s what VC firms need to know (high-level): ✅ Who is covered? Any "venture capital company" that 1) primarily invests in or finances early-stage or growth companies and 2) has a CA nexus — including: • Headquarters or significant presence in CA. • Investments in CA-based companies or companies with significant operations in CA. • Solicits or accepts investment from CA residents/account holders. 📅 Key deadlines: • March 1, 2026: Register with the California Department of Financial Protection and Innovation (DFPI) as a covered entity. • April 1, 2026: First annual demographic report due, covering 2025 investments. 📊 What must be reported? • Aggregated, anonymized demographic data voluntarily provided by founders (gender identity, race/ethnicity, disability status, veteran/LGBTQ+ status, CA residency). • Numbers and dollar amounts of investments in companies primarily founded by diverse teams. • Principal place of business for companies. 📋 Covered entities must distribute the standardized DFPI survey to founding teams to collect this information and incorporate it into their annual report. ⚠️ Why this matters: This requirement extends beyond traditional Silicon Valley firms. Even funds without a physical CA office may be caught if they have a CA investor or portfolio company. Non-compliance could expose firms to enforcement actions and penalties. ⚠️ What DFPI Still Needs to Clarify or Finalize Despite the statutory framework, material implementation details are still evolving, including: • Final reporting format and submission mechanics • How DFPI will interpret “CA nexus” in edge cases • Treatment of complex fund structures, SPVs, and parallel vehicles • Data validation, audit expectations, and record-retention standards • Enforcement posture and penalty framework for non-compliance • How updates or corrections to prior-year reports will be handled In short: the obligations are real, but the operational playbook is still being built, but funds that wait until guidance is finalized may find themselves compressed on timing. 🔗 Learn more and access official DFPI resources: 👉 DFPI VCC Reporting Program: https://lnkd.in/gHRxvwHP 👉 DFPI Survey: https://lnkd.in/gV_Bh2vM 💬 Be sure to discuss how this impacts your firm’s compliance and reporting strategy with your friendly neighborhood fund counsel.

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A new California law (FIP VCC) is forcing VCs to ask portfolio company founders about their sexual orientation, disabilities, and more – all so it can be reported to the state. We built a new system to help funds on AngelList comply without ever seeing individual founder responses. To preserve founder privacy everywhere, we've decided to make the system available to any fund for free, regardless of who they work with for fund admin. You can use it today: fipvcc.com

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Public Co. Boards - Think And Function Like A Raider Or Activist "There are numerous providers that work with public companies to develop defenses against shareholder activism. Yet the most foolproof way to avoid corporate raiders or activist investors is to position the company for value maximization and go about creating the same. It is axiomatic that raiders and activists do not pursue high performance companies." #corporategovernance #governance #boardsofdirectors #investors #institutionalinvestors #shareholderactivism #shareholdervalue https://lnkd.in/g3vvw6SM

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“We’re not here for fluff.” That’s how Gerry Widmer, CEO of Fidus Advisor, describes his approach to helping founders. It was an absolute blast to interview Gerry for the next edition of the SoCal Edge Podcast! We cut through the noise about startup growth, fundraising pressure, and the myth of the hockey-stick pitch. A few gems from Gerry: ✅ “The best founders tell their VCs: Get out of my kitchen. I’m running the business.” ✅ “Sales solve everything. You can’t feature your way out of a bad business.” ✅ “If you run a good business, the money will always be there.” We also talked about: -Why VC pressure often leads startups to raise more than they need -How the San Diego startup ecosystem rewards grit and sustainability over hype -Why product-focused founders need to adopt a sales mindset on day one -The right (and wrong) ways to pivot when runway gets tight Listen to the episode with Gerry here: Apple Podcasts: https://lnkd.in/gsgj3ez5 Spotify: https://lnkd.in/gpx3Gs3B

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If your fund has California LPs or portfolio companies, California's new FIPVCC law requires you to register with the state and report demographic data on your founding teams. Even if you're not based there. The registration deadline is March 1st and the first report is due April 1st. Non-compliance runs $5,000/day. Shayn Fernandez and Matt Jones broke it all down (with a The Bear reference, because it felt right): https://lnkd.in/dgVaGWM6

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💡Emerging GP Fundraising Insight #8: Rolling Closes Keep You Moving Small funds can't always afford to sit still until the target is hit. Rolling closes let you start deploying earlier, build a track record, and show momentum to prospective LPs. One GP told me that for Fund I ($5M target), he took capital as it came, signed, wired, and got to work. It wasn't perfect, but it kept the lights on and the deals moving. Sometimes the "sign and wire as it comes" approach is the only way to get moving. Takeaway: Momentum is a fundraising asset and rolling closes can help you keep it. Has anyone here used rolling closes as a strategic advantage?

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I spoke with Christien Louviere of BDE Capital about his journey from a $330mm exit to becoming an independent sponsor. Christien shared excellent insights for folks looking to partner with business owners, rather than buy sellers out completely. Below are a few of the topics we covered: - Why he moved from “zero-to-one” startups to a buy-then-build strategy - How Christien's background shaped a focus on growth vs. cost-cutting - Why 20–40% rolled equity is central to his deal structures—and how it builds trust with sellers - Using scenario analysis with AI tools to evaluate management teams and uncover hidden key-person risks - How to identify when a $3–5M EBITDA company truly has a middle management layer—or is still founder-reliant For anyone investing in or buying small businesses, Christien’s approach provides a fresh lens on growth, alignment, and deal structuring. 🎥 Watch the full interview here → https://lnkd.in/ekfkaiej 🎧 Listen on Spotify: https://lnkd.in/e86Agx6V

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