Fearless Fund Launches Microfinance Fund, Expands To Women-Owned Business Owners In Ghana
Black-owned investment firm Fearless Fund is launching a microfinance fund in Ghana. This, after, comes the American Alliance (AAER), which sued Fearless Fund, claiming that the Strivers Grant, sponsored by Mastercard, violated the Civil Rights Act of 1866 by excluding white founders. The Fearless Fund launched a new initiative one year after settling a lawsuit with the American Alliance for Equal Rights (AAER).
Now the venture capital firm has set its sights on Africa. It’s launching a microfinance fund in Ghana on March 21 and awarding GHS 100,000 to female entrepreneurs, according to AFROTECH.
Fearless fund moving to Africa
Fearless Fund hopes to help women-owned businesses in Ghana. The fund will also provide loans to these women, creating more jobs and spurring economic growth.
“Africa represents one of the world’s most dynamic economic frontiers, powered by a booming youth population and relentless innovation. Our presence in Ghana ensures founders have the critical access to capital needed to build and scale. Fearless Fund is a beacon of what’s possible when women of color lead with vision and power,” CEO Arian Simone said in a press release.
The lawsuit from AAER
In August 2023, AAER sued Fearless Fund. 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 the conclusion of the grant program when the court case began in August 2023. Fearless Fund has announced that the program will not recommence.
After the lawsuit, Fearless Fund lost several partnerships, and information on other grants for women of color was removed from its website. This new initiative marks a significant step forward for The Fearless Fund.
Image: Leigh Vogel
