Foley & Lardner LLP partner Louis Lehot was quoted in the Daily Journal article, “Lawyers Cautiously Approve of Diversity Disclosures for Venture Funds,” discussing the passage of Senate Bill 54, which is designed to promote transparency in venture capital by requiring firms to disclose information regarding the diversity of the businesses in which they invest.
Lehot explained that fostering diversity in private equity has been a priority for many groups for several years. SB 54 aims to “improve representation of diverse founders and investors that receive capital from the industry, and I applaud any initiative that tries to do that,” Lehot said.
Lehot noted that while he anticipates legal challenges to the law, he nonetheless expects venture capital firms to start organizing their information. “They’ll have to be a lot more thoughtful about the data they present,” he continued.
Lehot added that he will work with his clients to devise a compliance program and will advise them to report their data in a timely manner.