Atlanta-based venture capital firm Fearless Fund has permanently closed its Strivers Grant program, which provided $20,000 grants to Black women entrepreneurs.
This decision follows a settlement with the American Alliance for Equal Rights (AAER), a group led by conservative activist Edward Blum, the man behind the Supreme Court’s affirmative action ruling.
Fearless Fund’s Legal Battle
In August 2023, AAER sued Fearless Fund, claiming the Strivers Grant, which was sponsored by Mastercard, violated the Civil Rights Act of 1866 by excluding white founders.
The Act, originally designed to protect formerly enslaved people, prohibits racial discrimination in contracts. In June 2024, a court ruled that the program likely violated the law, leading to a preliminary injunction.
As of now, the grant has been permanently shut down.
Blum, president of AAER, said in a statement, “The American Alliance for Equal Rights encouraged the Fearless Fund to open its grant contest to Hispanic, Asian, Native American, and white women, but Fearless has decided instead to end it entirely.”
“Race-exclusive programs like the one the Fearless Fund promoted are divisive and illegal,” he added.
Read: Texas Nonprofit Drops Minority-Focus In Grants After AAER Lawsuit
Fearless Fund Remains Committed to its mission
Since the lawsuit, Fearless Fund has lost several partnerships, and information on other grants for women of color have been removed from its website.
Still, Fearless Fund CEO Arian Simone remains committed to her mission.
“From the moment the lawsuit was filed, I pledged to stand firm in helping and empowering women of color entrepreneurs in need. I stand by that pledge today, and in fact, my commitment remains stronger than ever,” she said in a statement.
“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.”
Rachel Noerdlinger, abut representative for Fearless Fund, also told TechCrunch that Simone plans to launch a $200 million debt fund continue supporting those in need of capital.
Image credit: WSJ/ Associated Press
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