Fearless Fund Defends Grant Program for Black Women-Owned Businesses in Key Lawsuit

The case, brought by the American Alliance for Equal Rights, has become emblematic of a growing legal backlash against corporate diversity programs.

The Fearless Fund, a venture capital firm that provides funding for businesses owned by women of color, is defending its Strivers Grant Contest, a program that provides $20,000 to businesses majority owned by Black women, in a lawsuit filed by the conservative group American Alliance for Equal Rights.
The lawsuit argues that the program discriminates against people of other races, and the case has become emblematic of a growing legal backlash against corporate diversity programs.
The Fearless Fund argues that the grants are protected by the First Amendment as they are charitable donations, but the American Alliance contends that the program is not a charitable donation but a contract whose racial requirements violate the 1866 Civil Rights Act.
The Fearless Fund was founded to address the racial disparity in funding for businesses owned by women of color, with less than 1% of venture capital funding going to businesses owned by Black and Hispanic women.
The case has become a rallying point for civil rights activists who argue that a ruling dismantling the program would endanger other donations or programs designed to help disadvantaged groups.