Fearless Fund Shuts Grant Program For Black Women, Settles Anti-DEI Lawsuit
Atlanta-based venture capital firm Fearless Fund has permanently closed its Strivers Grant program, which provided $20,000 grants to Black women entrepreneurs.
This decision follows a settlement with the American Alliance for Equal Rights (AAER), a group led by conservative activist Edward Blum, the man behind the Supreme Court’s affirmative action ruling.
Nevertheless, Fearless Fund remains committed to empowering historically overlooked entrepreneurs and plans to launch a new debt fund to continue supporting those in need of capital.
Fearless Fund’s Legal Battle
In August 2023, AAER sued Fearless Fund, claiming the Strivers Grant, which was sponsored by Mastercard, violated the Civil Rights Act of 1866 by excluding white founders.
The Act, originally designed to protect formerly enslaved people, prohibits racial discrimination in contracts. In June 2024, a court ruled that the program likely violated the law, leading to a preliminary injunction.
This program has not been operating since it entered the appeals back in September 2023 and it was at its conclusion of the grant program when the court case began August 2023. Fearless Fund has announced that the program will not recommence.
Blum, president of AAER, said in a statement, “The American Alliance for Equal Rights encouraged the Fearless Fund to open its grant contest to Hispanic, Asian, Native American, and white women, but Fearless has decided instead to end it entirely.”
“Race-exclusive programs like the one the Fearless Fund promoted are divisive and illegal,” he added.
Read: Texas Nonprofit Drops Minority-Focus In Grants After AAER Lawsuit
Fearless Fund Remains Committed to its mission
Since the lawsuit, Fearless Fund has lost several partnerships, and information on other grants for women of color have been removed from its website.
While seemingly a blow for DEI efforts, Fearless Fund told POCIT: “We strategically avoided a Supreme Court ruling because a ruling not in our favor at the Supreme Court would’ve ended minority based funding across the country.”
“From the moment the lawsuit was filed, I pledged to stand firm in helping and empowering women of color entrepreneurs in need. I stand by that pledge today, and in fact, my commitment remains stronger than ever,” Fearless Fund CEO Arian Simone explained in a statement.
“Our overarching mission remains focused on helping and empowering entrepreneurs who have been historically overlooked in the venture capital marketplace. The Fearless Fund and Fearless Foundation will continue to be a vital resource to ensure everyone has a fair shot at the American Dream.”
Future Plans
Rachel Noerdlinger, a representative for Fearless Fund, told TechCrunch that Simone plans to launch a $200 million debt fund continue supporting those in need of capital.
“The statistics for the underfunded are overwhelming which is why we have invested millions and the Fearless Foundation awarded over 500 grants,” Simone told POCIT.
“The one grant program the US appeals courts stopped was funding 6 entrepreneurs. This new program will touch over 3000 entrepreneurs. WE ARE STILL FUNDING WE ARE STILL FEARLESS!”
Update: This article was amended on September 12, 2024 to to clarify that the Strivers Grant program has not been operational since August 2023. The article was also updated to include comments from Fearless Fund.
Image credit: WSJ/ Associated Press
