A federal judge denied a request to block a small venture capital fund from providing grants to Black women starting their own businesses.
U.S. District Judge Thomas Thrash denied the request on Sept. 26, which was made by conservative activist Edward Blum and his nonprofit American Alliance for Equal Rights.
Blum filed a federal lawsuit claiming that the Fearless Fund Management violated the Civil Rights Act of 1866 because only Black women are eligible for the $20,000 grants. According to Reuters, Thrash denied the request for an injunction pending an appeal in a federal court in Atlanta.”
“Blum sought an injunction to block the Fearless Fund from awarding grants for what he called a “racially exclusive program.”
The fund was reportedly created in 2019 by entrepreneur Arian Simone, executive Ayana Parsons, and “The Cosby Show” actress Keshia Knight Pulliam to provide funding for women of color. It offers grants to women-owned and women-led businesses.
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Blum’s group filed an emergency appeal on September 23, requesting that the 11th U.S. Circuit Court of Appeals block the fund from selecting a grant recipient. However, the judge ruled that the Fearless Fund’s grant program is a form of speech protected by the U.S. Constitution’s First Amendment.
The Washington Post shared a statement from Arian Simone and Ayana Parsons following the ruling, highlighting the significant barriers women of color continue to face in accessing capital. In 2022, businesses owned by Black women received less than one percent of the $288 billion invested by venture capital firms.
The statement read, “Women of color continue to face significant barriers in obtaining access to capital. We are very pleased with the court’s decision to deny the plaintiffs’ attempt to shut down our grant program and look forward to continuing to advance our critical mission.”
The Rev. Al Sharpton was in Atlanta to support the Fearless Fund and spoke in front of the courthouse after the ruling. Sharpton emphasized that the fund is not discriminatory and was created to combat discrimination against women of color. “We won the first round,” he said.
Simone also spoke out following the decision and expressed her gratitude to those in attendance.
“Along with my partner Ayana Parsons, we have founded the nation’s first venture capital fund that is created by women of color for women of color,” she said. “And we will continue to operate the nation’s first venture capital fund that is built by women of color for women of color.”
Sharpton shared a video on social media with the caption, “We came to ATL to stand against those who seek to undo generations of hard-won civil rights because this country needs to move forward on equality – not backward… Today, I’m proud to have stood with #FearlessFund in that courtroom as the judge denied the preliminary injunction.'”
Blum is the founder of Students for Fair Admissions, the group that filed a lawsuit against affirmative action policies at Harvard University and the University of North Carolina. In June, the U.S. Supreme Court ruled that race can no longer be considered in college admissions, effectively ending affirmative action in college admissions.
Blum, a white conservative who has faced criticism for his stance, is also involved in a lawsuit against two law firms that provide grants for Black, Hispanic, and underrepresented minorities in terms of career opportunities. Blum alleges that these firms discriminate against white candidates.
“Excluding students from these prestigious fellowships based on their race is unfair, polarizing, and illegal,” said Blum.
The Fearless Fund is represented by the NAACP Legal Defense Fund, Gibson Dunn & Crutcher, and civil rights attorney Ben Crump.”
