A fund designed to bridge the gap in venture capital for Black-owned businesses is being sued for alleged discrimination.

Fearless Fund, a small, Black-owned venture capital fund investing in businesses led by women of color, is currently being sued by the American Alliance for Equal Rights. The alliance has accused Fearless Fund of running a "discriminatory program" that violates part of the Civil Rights Act of 1866.

The accusations stem from Fearless Fund's Fearless Strivers Grant Contest, which awards $20,000 to Black women who run businesses. The American Alliance for Equal Rights, headed by Edward Jay Blum, is asking the Atlanta federal court to put a restraining order and preliminary injunction against Fearless Fund by August 17, 2023. This would prevent them from identifying their next round of grant recipients.

Despite the lawsuit, Fearless Fund is making a positive impact for Black women business owners. According to CNBC, Black entrepreneurs receive less than 2% of venture capital funding every year, and Black women business owners receive only 1%. Fearless Fund has been able to make a difference for Black women business owners with their diverse portfolio of businesses, including Hairbrella, The Lip Bar, and Live Tinted.

Harvard Business Review reported that Black women are more likely, at 17%, to start a business than White men, at 15%. This just goes to show that Black women business owners are resilient and are doing their best to advocate for themselves. Fearless Fund is an example of how Black women business owners can create their own success, even in the face of adversity.

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