Fearless Fund Settles Lawsuit with American Alliance for Equal Rights, Shuts Down Strivers Grant Program
In a groundbreaking settlement agreement, Fearless Fund has decided to shut down its Strivers Grant program following a lawsuit from the American Alliance for Equal Rights. The program, initially supported by Mastercard, aimed to provide $20,000 to small businesses owned by Black women. However, AAER alleged that the program discriminated against non-Black founders, leading to a legal battle that ultimately resulted in the program's closure.
The lawsuit raised concerns about the use of race in contracts, with AAER arguing that race-exclusive programs are divisive and illegal. This development has significant implications for the venture industry, as it highlights the challenges faced by Black founders in accessing funding and opportunities. Despite efforts to address the funding disparity, Black founders continue to struggle, raising less than 1% of all venture investment in recent years.
Fearless Fund's decision to end the Strivers Grant program is a blow to the diversity, equity, and inclusion movement, signaling a shift in focus for tech foundations and companies. The impact of this settlement extends beyond Fearless Fund, as similar programs supporting minorities face legal challenges from conservative activists like Edward Blum.
As an investment manager, it is crucial to stay informed about developments like this settlement, as they can shape the landscape for under-resourced entrepreneurs. By understanding the implications of such legal battles, investors can make informed decisions to support diversity and inclusion in the financial market.