Fearless Fund, a venture capital firm committed to supporting Black women entrepreneurs, has successfully settled a lawsuit that temporarily halted its grant program.
CEO Arian Simone announced the resolution, marking the end of a contentious legal battle initiated by legal activist Edward Blum and the American Alliance for Equal Rights.
In August 2023, Blum’s group sued Fearless Fund, accusing it of “explicit racial exclusion” for offering grants exclusively to Black women entrepreneurs.
The lawsuit, filed in the U.S. District Court in Atlanta, argued that the program violated the Civil Rights Act of 1866 by not adhering to “race neutrality.”
The program awarded $20,000 grants and mentorship to Black women, aiming to address the underrepresentation of women of color in venture capital.
Initially, the case leaned in Fearless Fund’s favor when U.S. District Judge Thomas W. Thrash ruled in September 2023 that the program constituted charitable giving, thus protecting it under the First Amendment.
However, Blum appealed the decision, and the U.S. Court of Appeals for the 11th Circuit later issued a temporary injunction, barring the fund from distributing grants.
Despite setbacks, Simone and her team remained steadfast in their mission.
“Women of color continue to face significant barriers in obtaining access to capital. We are very pleased with the court’s decision to deny the plaintiff’s attempt to shut down our grant program,” Simone and former COO Ayana Parsons said in a joint statement during the early stages of the case.
After months of legal battles, the two parties agreed to a settlement in 2024. While the case’s dismissal means that Fearless Fund will close its Strivers Grant program, the company remains undeterred in its mission to empower under-resourced entrepreneurs.
Simone announced the launch of a new $200 million debt loan program, aimed at providing financial support to those historically marginalized in the venture capital space.
Civil rights attorney Ben Crump, who stood by Fearless Fund throughout the legal fight, applauded the fund’s commitment to economic justice.
“This initiative reflects their ongoing commitment to advancing equity and creating opportunities for those who have been historically marginalized,” Crump stated.
Simone remains committed to Fearless Fund’s broader mission:
“From the moment the lawsuit was filed, I pledged to stand firm in helping and empowering women of color entrepreneurs in need. My commitment remains stronger than ever.”
