TLDR:
- The Fearless Fund, a venture capital firm, is closing its grant program for Black women after settling a court case.
- The grant program was accused of being racially discriminatory against non-Black business owners.
In a recent court settlement, The Fearless Fund, an Atlanta-based venture capital firm, will permanently shut down its grant program aimed at supporting Black women entrepreneurs. This decision comes after a year-long legal battle over allegations of racial discrimination. The program, known as the Fearless Strivers Grant contest, awarded $20,000 to small businesses led by at least one woman of color. The settlement was reached between the Fearless Fund and conservative activist Edward Blum, who sued the fund and its foundation for being racially discriminatory against non-Black business owners.
According to a statement from the American Alliance for Equal Rights, which represented Blum in the case, the Fearless Fund chose to close the grant contest permanently instead of opening it to Hispanic, Asian, Native American, and white women. Alphonso David, one of the lead attorneys for the Fearless Fund, described the settlement as a “positive outcome” for the capital firm, emphasizing that the agreement does not restrict any future investment or charitable activities.
The legal dispute attracted significant attention as it raised questions about diversity, equity, and inclusion initiatives in various sectors. The National Venture Capital Association defended the Fearless Fund’s grant program in a court brief, highlighting the importance of creating equal opportunities for Black women in the venture capital industry. The case also highlighted the underrepresentation of Black women in investment roles, with only 2% of professionals in venture capital firms being Black women in 2022.
Conservative activist Edward Blum, who has a history of challenging affirmative action policies, welcomed the court ruling against the Fearless Fund’s grant program. Blum has been involved in various legal battles targeting racial requirements and efforts in different organizations, including airlines, technology companies, and cultural institutions.
