Edward Blum, the conservative lawyer behind the fight to overturn affirmative action, has set his sights on a new target: The Fearless Fund, a venture capital (VC) firm dedicated to supporting Black women and women of color entrepreneurs.
Blum’s organization, the American Alliance for Equal Rights (AAER), filed a lawsuit against the Fearless Fund’s Strivers Grant Contest, which planned to award four $20,000 grants to women-of-color-led businesses. The 11th U.S. Circuit Court of Appeals in Atlanta sided with Blum and placed a preliminary injunction, temporarily blocking the contest.
The lawsuit is part of a larger pattern: attacking diversity initiatives designed to level the playing field for historically excluded communities.
Why Target the Fearless Fund?
The Fearless Fund grant was worth just $80,000, a microscopic fraction of the $240 billion in VC funding distributed in 2022. So why target such a small program?
Because it represents progress. Because it empowers Black women. And because it threatens to dismantle white-dominant power structures by proving that Black women entrepreneurs can succeed when given fair access to capital.
The Myth of Favoritism
Critics claim that diversity-focused grants are a form of favoritism. The data tells a different story:
- 17% of Black women start new businesses, compared to 10% of white women and 15% of white men.
- Yet only 3% of Black women operate mature businesses.
- Between 2009 and 2017, Black women founders received just 0.0006% of VC funding.
- In 2022, less than 1% of VC dollars went to businesses led by Black women.
- Meanwhile, 93% of VC funding went to white men in 2022.
The real favoritism is the systemic funneling of capital to white male founders. Increasing Black women’s access to funding is not favoritism—it is course correction.
Why Fearless Fund Matters
Since its launch in 2019, the Fearless Fund has invested nearly $27 million in 40 women-of-color-owned businesses and awarded almost $4 million in grants.
Examples of its impact include:
- A $3 million funding round for Thirteen Lune, a beauty e-commerce platform.
- A major partnership between Thirteen Lune and JC Penney, connecting diverse products with millions of customers.
The Fearless Fund shows what happens when Black women have access to opportunities: they innovate, expand markets, and uplift communities.
The Bigger Threat
The Fearless Fund lawsuit is not just about one grant program. It’s a warning shot to other organizations that support Black entrepreneurs. These lawsuits force companies to spend valuable time, money, and resources defending themselves in court instead of fueling innovation and equity.
The goal is clear: create fear and discourage investment in Black economic advancement. If more organizations hesitate to act, progress toward racial equity in business will stall—or even reverse.
Why This Fight Matters
Research shows racism has cost the U.S. economy $16 trillion. Investing in Black women entrepreneurs is not only morally right, it’s economically smart:
- Businesses that foster diversity see higher profit margins.
- Customers demonstrate greater loyalty to brands committed to equity.
- Inclusive funding strengthens communities and fuels long-term innovation.
The Fearless Fund’s success proves that when Black women thrive, everyone benefits.
Moving Forward
Blum and other anti-equity crusaders know the power of Black women and collective action. That’s why the Fearless Fund is under attack. But while we remain vigilant against these lawsuits, we must also stay focused on our mission:
- Expand access to capital for Black women entrepreneurs.
- Challenge inequitable VC systems that overwhelmingly favor white men.
- Support equity-focused organizations that are leveling the playing field.
The fight is far from over. The Fearless Fund—and the women it supports—represent the future of business. Protecting and expanding these opportunities ensures that Black women continue to create, innovate, and lead.
Kerry Mitchell Brown, Ph.D., MBA Equity Strategist & Principal, KMB
Kerry Mitchell Brown, Ph.D., MBA