In a disheartening update the Fearless Fund, an Atlanta-based venture capital firm dedicated to empowering women of color, has announced it will permanently close its Fearless Strivers Grant program, which had been specifically designed to support Black women business owners.
The decision comes as part of a settlement reached with conservative activist Edward Blum and his group, the American Alliance for Equal Rights.
The program, which had awarded $20,000 grants to small businesses led by at least one woman of color, was the focus of a legal challenge by Blum’s group, which argued the grant was discriminatory against non-Black entrepreneurs.
In a court filing on Wednesday, attorneys for both Fearless Fund and the American Alliance for Equal Rights confirmed that a settlement had been reached, leading to the program’s closure.
We are saddened to see that following legal setbacks Fearless Fund has been forced to end its grant program intended to benefit Black women. We hope other organizations supporting marginalized groups will continue to perform this critical work.https://t.co/Raav6YlMkz
— Small Business Majority (@SmlBizMajority) September 11, 2024
Blum’s organization had pushed for the grant contest to be open to women of all races, but Fearless Fund instead opted to discontinue it altogether.
Alphonso David, an attorney representing Fearless Fund, described the settlement as a “positive outcome” for the venture capital firm, emphasizing that the agreement only affects the grant program and will not impact Fearless Fund’s other investment or charitable initiatives.
David reaffirmed that the firm remains committed to its mission of expanding economic opportunities, particularly for women of color.
The legal battle over the Fearless Strivers Grant drew widespread attention as it coincided with a national debate over affirmative action and diversity programs.
In August 2023, Blum’s group filed a lawsuit against Fearless Fund, claiming the program was discriminatory and violated the rights of non-Black business owners.
The lawsuit came at a time when diversity and inclusion initiatives faced heightened legal scrutiny.
The National Venture Capital Association supported Fearless Fund during the legal proceedings, submitting an amicus brief that defended the grant program as crucial to leveling the playing field for Black women entrepreneurs.
According to a study by Deloitte and Venture Forward, only 2% of investment professionals at venture capital firms in 2022 were Black women, highlighting the significant underrepresentation in the field.
Despite the program’s positive impact, a U.S. federal court of appeals suspended the Fearless Strivers Grant program in June 2023, overturning a lower court’s ruling that had allowed it to continue.
The appeals court ruled that Blum’s lawsuit had a likelihood of success, citing concerns that the program’s race-based criteria excluded other applicants.
Blum, a long-time opponent of race-conscious policies, has been at the forefront of several high-profile legal battles.
His most notable victory came in 2023 when the Supreme Court ruled against race-based admissions in higher education.
His group has also filed lawsuits against companies like Southwest Airlines, Amazon, Meta, and the Smithsonian National Museum of the American Latino, all challenging diversity-focused initiatives.
Although the Fearless Strivers Grant program has ended, Fearless Fund remains committed to its broader mission of fostering economic opportunities for underrepresented communities.
What’s Next
On LinkedIn The Fearless Fund gave some hope:
To GOD Be The Glory! It’s been over a year of being in a federal court case and now it’s finally dismissed!
A few things that need to be clarified:
1. This is a WIN and positive outcome for the Fearless Fund and our community.
2. The US federal court of appeals stopped the Fearless Strivers grant program for Black women on June 3rd ruling suggesting we were in violation of the law. This program has not been operating since it entered the appeals process back in September 2023 and it was at its conclusion of the grant program when the court case began August 2023, it was designed to award 6 people in one year and it was at its end when the case began.
3. We strategically avoided a Supreme Court ruling (the deadline to appeal our appeal has passed) because a ruling not in our favor at the Supreme Court would’ve ended minority based funding across the country and that would not be wise, we have already seen the Supreme Court ruling for the colleges end affirmative action for all colleges in schools and admissions.
4. Elections have consequences, we have had 3 federal rulings in this process where 4 Trump appointed judges ruled against us, 2 Clinton and 1 Obama appointed judges ruled for us. The writing is on the wall of who wants this work to continue and who does not. Be sure to vote November 5th!
5. This work is important because the statistics for the underfunded are overwhelming and this is why we have invested millions of dollars and awarded grants to over 500.
6. Any false narrative floating that anyone is claiming we are not moving forward at the Fearless Fund is not true, what is true is that we are proud to announce our new debt fund (our loan program is live on our website) for under resourced entrepreneurs- male and female!
7. The one grant program the US appeals courts stopped was funding 6 entrepreneurs, this new program will touch over 3000 entrepreneurs, that sounds like a WIN to me.
NEWS: A Statement from our President and CEO @AlphonsoDavid, who serves as Co-Counsel of the Fearless Fund and Fearless Foundation, regarding the settlement dismissing the Fearless Fund case.
“The resolution of this case is a positive outcome for the Fearless Fund. The parties… pic.twitter.com/Xfko2ALnyX
— Global Black Economic Forum (@GBEF_) September 11, 2024
