A bunch of Canadian news outlets are in a tizzy, suing OpenAI for allegedly using their content without permission. The Read more
India-based audio platform Pocket FM has a vast content library. However, CEO Rohan Nayak believes there is room for expansion Read more
ChatGPT Search, OpenAI's AI-powered web search experience, has officially launched for all ChatGPT users, introducing several new features to enhance Read more
Humanz, a cutting-edge marketing platform for content creators and brands, has officially made its debut in the U.S. market, as Read more
Fearless Fund Settles Lawsuit with American Alliance for Equal Rights, Shutters Strivers Grant Program
Venture capital firm Fearless Fund has reached a settlement agreement with the American Alliance for Equal Rights (AAER), resulting in the closure of its Strivers Grant program. This program, initially supported by Mastercard, aimed to provide $20,000 to small businesses owned by Black women. However, AAER, led by conservative activist Edward Blum, filed a lawsuit against Fearless Fund, alleging that the program discriminated against non-Black founders and violated the Civil Rights Act of 1866, which prohibits the use of race in contracts. In June of this year, a court ruled that Fearless Fund’s contract likely breached the Act and upheld a preliminary injunction on the program.
In response to the settlement, Blum stated, “The American Alliance for Equal Rights encouraged the Fearless Fund to open its grant contest to Hispanic, Asian, Native American, and white women, but [the firm] has decided instead to end it entirely.” Blum emphasized that race-exclusive programs such as the one promoted by Fearless Fund are divisive and unlawful, advocating for grant programs to be open to all applicants irrespective of race.
Fearless Fund’s CEO Arian Simone expressed satisfaction with ending the case and reiterated the firm’s commitment to supporting under-resourced entrepreneurs who have historically faced challenges in accessing traditional capital markets. Despite facing setbacks, Simone remains dedicated to empowering women of color entrepreneurs and announced plans for a $200 million debt fund to provide financial assistance.
Challenges for Black Founders and the Impact of the Lawsuit
The lawsuit between AAER and Fearless Fund has drawn attention from the venture industry, with some investors and founders expressing surprise at the application of a civil rights act designed to aid the formerly enslaved against a marginalized population. Despite efforts like the Strivers Grant program, Black founders continue to struggle in securing funding and opportunities, receiving less than 1% of invested venture funding annually. The closure of the grant program further hinders diversity, equity, and inclusion initiatives, as other DEI tech foundations have ceased operations and companies are redirecting support away from minority-focused programs.
Conservative activism spearheaded by individuals like Blum has led to the discontinuation of race-based programs, echoing previous successes in challenging practices such as race-conscious college admissions. Fearless Fund, once offering grants for businesses owned by women of color, has faced significant losses in partnerships following the lawsuit. Information on other grants previously available on the firm’s website is no longer accessible, indicating a shift in focus and strategy within the organization.
