TLDR:
– Fearless Fund is shutting down its Strivers Grant program after a lawsuit by the American Alliance for Equal Rights (AAER).
– The program was initially sponsored by Mastercard to provide $20,000 to small businesses owned by Black women.
Venture capital firm Fearless Fund and the American Alliance for Equal Rights (AAER) have reached a settlement that will result in the closure of Fearless Fund’s Strivers Grant program. The program, initially backed by Mastercard, aimed to provide $20,000 to small businesses owned by Black women. However, the AAER, led by conservative activist Edward Blum, sued Fearless Fund, alleging that the program discriminated against non-Black founders and violated the Civil Rights Act of 1866. A court ruled in favor of AAER, prompting Fearless Fund to terminate the program.
Despite the legal battle, Fearless Fund remains committed to supporting under-resourced entrepreneurs, with plans to announce a $200 million debt fund for those in need of financing. The closure of the Strivers Grant highlights the challenges faced by Black founders in accessing capital, as they raise less than 1% of all venture funding each year. The end of this grant program reflects a broader trend of diversity, equity, and inclusion initiatives being reevaluated and restructured within the tech industry.
