Fearless Fund Ends Grant Program for Black Women Entrepreneurs as Part of Lawsuit Settlement
The Fearless Fund has discontinued its small business grant competition for Black women following a lawsuit from a conservative group that alleged the program was discriminatory.
On Wednesday (September 11), the Atlanta-based venture capital firm, founded by Black women to support women of color, and the plaintiffs—the conservative nonprofit American Alliance for Equal Rights—submitted a joint motion to dismiss the case with prejudice. This means the Alliance cannot file another lawsuit regarding this particular grant competition.
The case began last August when the Alliance filed a lawsuit against the Fearless Fund and its foundation over the Fearless Strivers Grant Contest, a $20,000 award for Black women entrepreneurs funded by Mastercard. The Alliance argued the contest was discriminatory against non-Black entrepreneurs.
In June, a three-judge panel from the 11th U.S. Circuit Court of Appeals ruled 2-1 against Fearless, issuing a preliminary injunction on the grant.
Rather than appeal the decision, Fearless Fund CEO and co-founder Arian Simone explained last month that she and her team opted to settle, as a loss could lead to the ruling being applied nationwide.
Fearless Fund confirmed the settlement in a statement but did not disclose the terms, stating, “From the moment the lawsuit was filed, I pledged to stand firm in helping and empowering women of color entrepreneurs in need. Our overarching mission remains focused on helping and empowering entrepreneurs who have been historically overlooked in the venture capital marketplace.”
Encouraged by the Supreme Court’s recent ruling that eliminated affirmative action in college admissions, conservatives have ramped up challenges against various companies and government institutions, targeting programs and policies that promote diversity, equity, and inclusion (DEI).
Over the years, the Fearless Fund has helped grow notable companies, including beauty retailer Thirteen Lune and the restaurant chain Slutty Vegan, founded by restaurateur Pinky Cole.
