The Fearless Fund, a venture capital firm co-founded by Arian Simone and Ayana Parsons, faces a lawsuit filed in August for alleged racial discrimination. The suit comes from a nonprofit group known as the American Alliance for Equal Rights, a conservative organization led by Edward Blum aimed at eliminating affirmative action in college admissions.
The Atlanta-based Fearless Fund, recognized for its focus on supporting Black female entrepreneurs, has been ordered by the 11th Circuit Court of Appeals to pause its $20,000 small business grant applications. This decision came down on September 30th, the application’s original closing date. The court order also specifies that no grant winners may be selected during this period.
Before this, representatives from the American Alliance for Equal Rights and the Fearless Fund met in court. The Alliance’s legal team requested that U.S. District Court Judge Thomas Thrash Jr. prohibit Fearless Fund from enforcing racial eligibility criteria for their grants. Judge Thrash rejected the request, stating the Alliance had “failed to carry its burden to clearly show a likelihood of success on the merits and irreparable harm.”
However, later that same day, the Alliance filed an emergency motion with the 11th Circuit Court of Appeals, leading to a panel of three judges overturning Thrash’s initial ruling. The current standing sees two judges in favor of the Alliance and one siding with Fearless Fund.
