Fearless Fund, a venture capital firm committed to supporting women of color entrepreneurs, has settled a lawsuit brought by the American Alliance for Equal Rights (AAER), leading to the permanent closure of its Strivers Grant Contest.
Despite the end of the grant, Arian Simone, Fearless Fund’s CEO and founding partner, said she remains resolute in her mission to uplift historically underserved communities.
“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,” Simone said. “Our overarching mission remains focused on empowering entrepreneurs who have been historically overlooked in the venture capital marketplace.”
The lawsuit, filed by AAER in federal court on August 2, 2023, challenged the legality of the Strivers Grant Contest, which exclusively served Black women entrepreneurs. AAER argued that the program violated a federal law ensuring all Americans the right to make and enforce contracts without regard to race. In June 2024, the U.S. Court of Appeals for the 11th Circuit ruled that the contest likely breached this statute, prompting Fearless Fund to make the difficult decision to close it permanently.
While Fearless Fund may no longer offer this specific grant, their broader mission continues. Simone’s efforts have garnered the support of civil rights leaders like the Rev. Al Sharpton, founder and president of the National Action Network (NAN), who praised her resilience and the fund’s commitment to equity in entrepreneurship.
“Arian Simone stood steadfast in her commitment to supporting those most often overlooked in our economy,” Sharpton said. “The attacks on Arian and the Fearless Fund speak to historic efforts to cut the opportunity ladder out from under us. Her resilience is a testament to her dedication, and we owe her a debt of gratitude for her leadership.”
Sharpton also noted that the lawsuit was part of a broader effort by right-wing legal activists to dismantle Diversity, Equity, and Inclusion (DEI) programs. He linked the case to the Supreme Court’s recent decision to strike down affirmative action, arguing that the attack on Fearless Fund reflected a growing hostility toward programs designed to address historic inequalities.
“Let’s not forget that the same right-wing legal activists who brought this case were the ones who pushed the Supreme Court to gut affirmative action,” Sharpton said. “Diversity, equity, and inclusion became a lightning rod for the radical right, with ‘DEI’ becoming a dog whistle to punch down on already underserved communities.”
Despite the legal setback, Fearless Fund and its sister organization, Fearless Foundation, remain committed to their core mission.
The foundation, a 501(c)(3) nonprofit, provides capital, mentorship, and education to women of color entrepreneurs, who they describe as “the unrecognized economic powerhouses of our world.”
Edward Blum, president of AAER, said his organization had encouraged Fearless Fund to broaden its grant program to include women of all racial backgrounds, but the organization chose to end the contest instead. Blum argued that race-exclusive programs are not only divisive but also illegal under federal civil rights laws.
“Race-exclusive programs like the one the Fearless Fund promoted are divisive and illegal,” Blum said. “Opening grant programs to all applicants, regardless of their race, is enshrined in our nation’s civil rights laws and supported by significant majorities of all Americans.”
Although the Strivers Grant Contest will not return, the broader debate over DEI initiatives in business and other sectors continues to intensify. Sharpton emphasized that while the immediate threat posed by the lawsuit has been subdued, the battle to defend DEI programs is far from over.
“With the dismissal of this case, the immediate threat to DEI, workplace diversity, and free speech has been subdued for now,” Sharpton said. “But the fight to defend and promote workplace diversity will continue in boardrooms, state legislatures, universities, the White House, and beyond. We will not allow the radical right to dismantle the progress we’ve made.”
For Simone, the closure of the contest is not the end, but a moment to reaffirm her commitment to empowering women of color.
“The Fearless Fund and Fearless Foundation will continue to be a vital resource to ensure everyone has a fair shot at the American dream,” she said.
Salaam alaykum.
Women do not belong in business. Allah wills it.