Lowenstein Sandler

Recognized for its entrepreneurial spirit & high standard of client service, LS is a law firm committed to the interests of clients, colleagues & communities.

[Ed Zimmerman @EdGrapeNutZimm]

Really appreciated the opportunity to discuss founder friction in VC-backed startups & VC funds (what you’d get @LowensteinLLP or what I taught in my @Columbia_Biz VC/Angel Investing course). 🙏 @ABABusLaw https://t.co/b6ozHV0miV

[Ed Zimmerman @EdGrapeNutZimm]

@LowensteinLLP Note: the diversity data also calls for info that may be difficult in certain geographies because, for instance, “[s]ixty-eight countries [currently] criminalize same-sex sexual relations… In up to twelve countries, same-sex sexual relations may be punishable by death…” @HRC

[Ed Zimmerman @EdGrapeNutZimm]

@LowensteinLLP DFPI’s survey form itself clearly states: “Participation Is Voluntary”&
“A founding team member’s decision to disclose demographic information is voluntary. No adverse action will be taken against a founding team member who declines to participate" https://t.co/eVpNJEY1C3

[Ed Zimmerman @EdGrapeNutZimm]

@LowensteinLLP Importantly, once a fund establishes a California nexus, reporting duties extend to ALL qualifying investments worldwide — not just U.S.- or CA-based companies...
FIPVCC would require a covered fund to also collect data from non-California & non-U.S. holdings

[Ed Zimmerman @EdGrapeNutZimm]

@LowensteinLLP Because the statute doesn't limit coverage to U.S.-based funds, non-U.S. venture capital firms that invest in California-based companies or solicit or accept investments from CA residents or entities may also be subject to the FIPVCC’s registration & reporting requirements

[Ed Zimmerman @EdGrapeNutZimm]

@LowensteinLLP this nexus requirement obligates funds to grapple w/ (i) what constitutes “soliciting” a potential investor, & (ii) whether & how to track which potential investors are “California-based” (and how and for how long the firm must retain records of this tracking).

[Ed Zimmerman @EdGrapeNutZimm]

@LowensteinLLP That's right...without more, a VC firm will have sufficient nexus if it solicits OR receives investments from a California resident or entity.
Like even 1 LP?!?
Even when that LP ends up not investing???

[Ed Zimmerman @EdGrapeNutZimm]

@LowensteinLLP a VC firm has a “California nexus” if it satisfies any 1 of the following criteria:
is headquartered in CA;
has a significant presence or operational office in CA;
invests in a company based in or primarily operating in CA; or
solicits OR receives investments from a CA resident

[Ed Zimmerman @EdGrapeNutZimm]

BUT -FIPVCC has really Broad "California Nexus Requirements" for Foreign and Domestic VCs!!

[Ed Zimmerman @EdGrapeNutZimm]

FIPVCC says “covered entities” are those satisfying each of the following: (1) qualifies as a venture capital company, (2) primarily engages in the business of investing in, or providing 💰💵 to, startup, early stage, or emerging growth companies, & (3) has a California nexus

[Ed Zimmerman @EdGrapeNutZimm]

April 1, 2026 (& annually after): Covered entities must file an annual report with the DFPI containing anonymized, aggregated demographic data regarding portfolio company founders for qualifying investments made in the prior calendar year. Filed reports will be made public...

[Ed Zimmerman @EdGrapeNutZimm]

March 1, 2026: Covered entities must register with the California Department of Financial Protection and Innovation (“DFPI”) & provide basic identifying information (name, address, contact details, & a designated compliance contact)

[Ed Zimmerman @EdGrapeNutZimm]

Fund managers should promptly determine whether any of their funds qualify as “covered entities” under California’s new diversity reporting law, the Fair Investment Practices Venture Capital Companies Act (“FIPVCC”), as the first registration deadline is less than a month away

[Ed Zimmerman @EdGrapeNutZimm]

My @LowensteinLLP colleagues & I wrote about the new mandatory reporting for VC Funds (& MORE) who have a NEXUS to California, which can include a single LP or portfolio company there! Read more FIPVCC: https://t.co/zNUihNCtcX

[NJBIZ @NJBIZ]

.@LowensteinLLP is launching a social impact group to help mission-driven companies and investors navigate the social innovation economy. https://t.co/0Gwi1aK4nH

[QUANTIS @quantis_app]

Today our team presented QUANTIS at @LowensteinLLP to @VentureCrushFG in NYC! It was really great to meet everyone seeing all the companies and founders presenting!

#VentureCapital #Entrepreneur #nyc

[MindMuscle @PigPugHealth]

One of the best Christmas parties this season 🎄✨
Huge thanks to @VentureCrushFG @venturecrushNY
@VentureCrush @LowensteinLLP @EdGrapeNutZimm for an amazing night - great people, meaningful conversations, and live music to top it off.
The perfect mix of community, startups, and holiday spirit. 👏🎶 @Emilykingmusic
#VentureCrush #NYCEvents #StartupCommunity #ChristmasParty #VC

[Priyanka Paithankar, PhD | UT Austin | IIT Bombay @PriyankaOnSaas]

Had a wonderful time at the 2025 MatchPlay Startup Summit in #NYC! Huge thanks to @LowensteinLLP, MatchPlay for curating such a vibrant mix of founders & investors. Kudos to the amazing panelists (@maddi_holman) and moderators—@heshnarayanan and all the speakers for sparking thoughtful conversations around #AI, #SaaS, and #venture.

[UChicago Center on Law and Finance @UChiLawFinance]

Thanks to all who joined us for another successful #DigitalAssets conference last month! We appreciate the valuable connections and close engagement between theory and practice in this dynamic field. Special thanks to our law firm partners for their collaboration and sponsorship!

[FordhamLawCrypto @FordhamCrypto]

A fantastic lunch sponsored by @lathamwatkins with sun (SOL) and crisp weather at Lincoln Center.
Also thanks to @LowensteinLLP for sponsoring all day coffee and snacks and @CahillNXT for sponsoring the networking reception.