Fearless Fund, a venture capitalist firm that invests in female entrepreneurs of color, has settled a discrimination lawsuit over a grant geared specifically to Black women.
In August 2023, conservative legal activist Edward Blum and his American Alliance for Equal Rights (AAER) group filed a lawsuit against the Black-female-owned firm, accusing them of “explicit racial exclusion” for creating a grant program that was “open only to Black females. The lawsuit alleged that it went against the Civil Rights Act of 1866.
The grant under accusation was the fund’s Fearless Strivers Grant Contest which provided $20,000 in grants and mentorship to Black women. According to the organization, black women-owned businesses receive less than 1% of venture capital funding.
The AAER suggested the fund be open to Hispanic, Asian, Native American, and white women, but Fearless decided to end it altogether.
CEO and Fearless Fund founding partner Arian Simone shared the happy news on her Instagram.
“To GOD Be The Glory,” she posted. “It’s been over a year of a being in a federal court case and now it’s finally dismissed!”
The grant program was near its end when the court case began last year. The ending of the program prevented the case from going to the Supreme Court which could have ended minority-based funding nationwide.
Simon and her team reaffirmed their commitment to supporting Black women entrepreneurs, announcing a new $200 million debt fund. The goal is to lend those funds to more than 3,000 under-resourced male and female founders.
“From the moment the lawsuit was filed, I pledged to stand firm in helping and empowering women of color entrepreneurs in need,” Simone released a statement as reported by Black Star. “I stand by that pledge today and in fact my commitment remains stronger than ever. Our overarching mission remains focused on helping and empowering entrepreneurs who have been historically overlooked in the venture capital marketplace. The Fearless Fund and Fearless Foundation will continue to be a vital resource to ensure everyone has a fair shot at the American Dream.”
