August 4th 2023.
The Fearless Fund, the first VC fund built by women of color for women of color, has been caught off guard by a lawsuit filed against them this week by anti-affirmative action activist Edward Blum and his organization, American Alliance for Equal Rights. Despite having raised tens of millions of dollars to help Black women business owners grow and expand their businesses since 2019, the Fearless Fund is now facing this legal battle.
Black leaders have expressed strong objections to the Supreme Court’s decision to abolish affirmative action, and the lawsuit against the Fearless Fund further raises questions as to whether the workplace will be Blum’s next target. According to William Michael Cunningham, owner of Creative Investment Research, the lawsuit is an “existential threat to the survival of all Black businesses.”
The lawsuit questions the Fearless Strivers Grant Contest, a program which awards Black women small business owners $20,000 in grants and digital tools to help them grow. Blum claims that some of his roughly 60 members (consisting of White and Asian American people) have been excluded from the grant program due to their race.
Cunningham suggests that the American Alliance for Equal Rights stands a good chance of succeeding in their lawsuit as their previous affirmative action lawsuit was adjudicated in their favor by the Supreme Court. He calls for a “bold, courageous, and authentic approach” to combat the situation.
The Fearless Fund is now faced with responding to the lawsuit soon. It remains to be seen what action they will take, but Black business owners across the nation will be watching closely.
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