Question 1

What is FIPVCC?

Accepted Answer

FIPVCC stands for the Fair Investment Practices by Venture Capital Companies law. It is a California law codified at Corporations Code section 27500 et seq. that requires covered venture capital companies to collect and report voluntary demographic data about founding team members of companies they invest in. The law is administered by the California Department of Financial Protection and Innovation (DFPI). Learn more in our detailed FIPVCC explainer.

Question 2

When does FIPVCC take effect?

Accepted Answer

FIPVCC takes effect on March 1, 2026. The first annual Venture Capital Demographic Data Report is due to the DFPI by April 1, 2026, covering investment activity from the prior calendar year.

Question 3

Who is covered by FIPVCC?

Accepted Answer

Covered venture capital companies are those with a California nexus — for example, firms headquartered in California, operating in California, or making investments in California-based companies. The law applies to entities meeting the definition of a "venture capital company" under Corp. Code section 27500. If you are unsure whether your firm is covered, consult legal counsel or contact the DFPI at VCC_Support@dfpi.ca.gov.

Question 4

What demographic data must be collected under FIPVCC?

Accepted Answer

Covered entities must offer founding team members a voluntary demographic survey collecting data on: race and ethnicity, gender identity, sexual orientation (LGBTQ+ status), disability status, and veteran status. The survey also asks about California residency. All participation is voluntary — founders may decline without consequence.

Question 5

Is the demographic survey mandatory for founders?

Accepted Answer

No. Participation is entirely voluntary. Founders may decline to respond to any or all questions without consequence. However, the venture capital company must offer the survey to founding team members of companies it invests in.

Question 6

What is the Venture Capital Demographic Data Report?

Accepted Answer

The Venture Capital Demographic Data Report is an annual report submitted to the DFPI containing aggregated and anonymized demographic data about founding team members. Individual survey responses are never shared — only aggregate statistics are included. Reports are made publicly available on the DFPI website. See our DFPI reporting requirements guide for details.

Question 7

Where can I find official DFPI guidance on FIPVCC?

Accepted Answer

The official DFPI VCC Reporting Program page is at dfpi.ca.gov/regulated-industries/vcc-reporting-program. You can also contact the DFPI directly at VCC_Support@dfpi.ca.gov or by phone at (866) 275-2677.

Question 8

What is FairVC?

Accepted Answer

FairVC is a privacy-first compliance platform built specifically for FIPVCC. It handles the entire workflow for you — managing portfolio companies, sending anonymous demographic surveys to founders, securely encrypting all responses, and generating the official DFPI Venture Capital Demographic Data Report as a downloadable PDF. Founder names and email addresses are never stored. Visit our pricing page to get started.

Question 9

How does FairVC protect sensitive demographic data?

Accepted Answer

FairVC was designed from the ground up around data minimization. Demographic responses are encrypted using bank-grade encryption and stored separately from your operational data. Founder names and emails are never saved — they are used only in the moment to send the survey invitation and then discarded. Reports contain only aggregate statistics, so individual responses are never exposed. Read more about our data security practices.

Question 10

Does FairVC store founder names or email addresses?

Accepted Answer

No. When you send a survey, the founder's name and email are used only to deliver the invitation. Once the email is sent, that information is immediately discarded. Survey records in the system use anonymous labels — never real names or contact details. This means there is no personal information at risk, even in a worst-case scenario.

Question 11

How are surveys sent if emails aren't stored?

Accepted Answer

You enter the founder's name and email when you send the invitation. FairVC delivers the survey link via a secure email provider and then discards the contact information. The founder receives a unique, one-time link to complete the survey. The system tracks only the delivery status and an anonymous label — never the founder's identity.

Question 12

What does FairVC cost?

Accepted Answer

FairVC offers two plans, both billed annually. All plans include DFPI report generation and 5-year encrypted data retention. The Professional plan at $49/month supports up to 5 Covered Entities. The Enterprise plan at $149/month supports unlimited Covered Entities. Both plans include optional managed filing. See full pricing details.

Question 13

Can FairVC generate the official DFPI report format?

Accepted Answer

Yes. FairVC generates a PDF report matching the official DFPI Venture Capital Demographic Data Report template, ready for submission. The report includes Part One (aggregate demographic responses), Part Two (investment analysis by diversity status), and Part Three (portfolio company listings) — all formatted per DFPI requirements. Only aggregate statistics appear in the report; no individual-level data is ever included.

Question 14

How is demographic data encrypted?

Accepted Answer

All demographic survey responses are encrypted using bank-grade encryption (AES-256-GCM) — the same standard used by financial institutions and government agencies. Data is encrypted both at rest and in transit. Encryption keys are rotated regularly and stored separately from the data they protect.

Question 15

What happens to my data if there is a security breach?

Accepted Answer

FairVC is designed for breach resilience. Demographic data is encrypted and stored separately from your operational information, so no single point of compromise can expose sensitive data. There are no founder names or emails to leak — they are never stored in the first place. Even in a worst-case scenario, an attacker would find only encrypted data with no way to identify who it belongs to.

Question 16

Does FairVC keep audit logs?

Accepted Answer

Yes. FairVC maintains privacy-safe activity logs that record compliance-relevant actions — such as when a survey was sent, when a response was received, or when a report was generated. These logs use anonymous identifiers rather than real names, so they support your record-keeping obligations without creating any additional privacy risk.

Question 17

Is FairVC aligned with CCPA and GDPR?

Accepted Answer

Yes. FairVC's approach — never storing personal information, encrypting all sensitive data, and reporting only in aggregate — is aligned with the principles of both the California Consumer Privacy Act (CCPA) and the EU General Data Protection Regulation (GDPR). Because FairVC never stores personal data, many common data-privacy obligations are simplified by design. See our Privacy Policy for full details.

Question 18

How long is demographic data retained?

Accepted Answer

On the Annual plan, FairVC provides secure 5-year encrypted data retention, ensuring your firm meets FIPVCC record-keeping obligations. All retained data remains fully encrypted and can be securely purged upon request.

Question 19

What happens if I don't comply with FIPVCC?

Accepted Answer

The DFPI has enforcement authority under Corp. Code section 27500 et seq. Non-compliance may result in regulatory action. The specific consequences depend on the nature and extent of the non-compliance. Consult the statute and your legal counsel for details on potential penalties.

Question 20

When is the annual DFPI report due?

Accepted Answer

The annual Venture Capital Demographic Data Report is due to the DFPI by April 1 each year, beginning April 1, 2026. The report covers investment activity and demographic data from the prior calendar year.

Question 21

Does FIPVCC apply to out-of-state VC firms?

Accepted Answer

If the firm has a California nexus — for example, making investments in California-based companies or having offices in California — it may be covered by FIPVCC regardless of where it is headquartered. The key factor is the firm's connection to California, not its state of incorporation.

Question 22

How does FairVC help me stay compliant without compromising privacy?

Accepted Answer

FairVC was built to solve the core tension of FIPVCC: you must collect sensitive demographic data, but you also have a duty to protect it. FairVC's privacy-first design ensures you can meet every DFPI requirement — anonymous surveys, encrypted responses, and aggregate-only reporting — without ever building a centralized store of identifiable sensitive data. See our compliance guide for a step-by-step walkthrough.

FIPVCC Frequently Asked Questions

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