Fearless Fund, the Atlanta-based venture capital firm started by Black women to invest in women of color, has agreed to end a small business grant contest for Black women, putting an end to a yearlong racial discrimination lawsuit that has roiled the larger philanthropic world.
Fearless and the plaintiffs, the conservative nonprofit American Alliance for Equal Rights, filed a joint motion to dismiss the case with prejudice Wednesday morning, meaning the Alliance cannot sue over the specific grant contest again.
“As of today, the Fearless Fund has permanently closed the grant contest and will never reopen it,” the Alliance said in a statement.
Fearless Fund confirmed the settlement in a statement, though did not disclose the terms.
“From the moment the lawsuit was filed, I pledged to stand firm in helping and empowering women of color entrepreneurs in need,” Fearless Fund CEO and co-founder Arian Simone said. “Our overarching mission remains focused on helping and empowering entrepreneurs who have been historically overlooked in the venture capital marketplace.”
The case started in August last year when the Alliance sued Fearless and its foundation over its Fearless Strivers Grant Contest, a $20,000 grant for Black female entrepreneurs sponsored by Mastercard. The Alliance alleged the contest discriminated against non-Black businesspeople.
In June a three-judge 11th U.S. Circuit Court of Appeals panel ruled 2-1 against Fearless and issued a preliminary injunction against the grant.
Rather than appeal, last month, Simone said she and her team decided to settle because if they lost, the decision would apply nationwide.
Alphonso David, chief executive of the Global Black Economic Forum and one of the lead lawyers for the Fearless Fund, said the group was prepared to go to the U.S. Supreme Court.
But by settling the case, Fearless can get back to its mission of helping under resourced entrepreneurs, David said.
“The more time that we’re focused on distractions, we’re unable to actually advance our mission to advance equity,” he said.
He added the settlement does not restrict any investment or other charitable activity of the Fearless Fund or the foundation outside of the Fearless Strivers Grant Contest.
Credit: cjuste@miamiherald.com
