TLDR:
- An appeals court blocked Fearless Fund from distributing $20,000 in grants to Black women business owners after a lawsuit alleging discrimination.
- Fearless Fund CEO Arian Simone expressed devastation over the ruling and vowed to continue fighting for women of color entrepreneurs.
An appeals court has ruled against Fearless Fund, an Atlanta-based venture capital firm that supports women of color businesses, preventing it from distributing $20,000 in grants to Black women business owners. The ruling came after a lawsuit filed by conservative activist Edward Blum, who alleges that the grant program is discriminatory. As a result of the ruling, the fund is temporarily prohibited from distributing grants. Fearless Fund’s CEO Arian Simone expressed her devastation over the decision, stating that she is determined to continue fighting for women of color entrepreneurs, despite the setback.
The ruling has sparked criticism from Black leaders like Rev. Al Sharpton and NAACP President Derrick Johnson, who believe that organizations working to close the racial wealth gap should not be deemed discriminatory. The situation highlights the existing disparities faced by women and women of color in the venture capital fund world, with women of color receiving only 0.39% of allocated venture capital in 2022. Despite these challenges, women of color entrepreneurs continue to thrive, with businesses owned by Latina women growing more than 87% from 2007 to 2012, and Black women-owned businesses increasing by almost 20% from 2017 to 2020.
