*A venture capital firm can continue offering a grant program only to Black women entrepreneurs amid a lawsuit arguing that it discriminates against other races.
We reported previously that a conservative group founded by the man who led the fight to end affirmative action in higher education has filed a lawsuit against the Atlanta-based Fearless Fund, a venture capital firm that invests in Black female entrepreneurs.
Edward Blum, the founder of Students for Fair Admissions, the group behind the anti-affirmative action case that reached the Supreme Court, is suing the fund, ABC News reports. The organization argues that the fund is “operating a racially discriminatory program that blatantly violates Section 1981’s guarantee of race neutrality.”
A federal judge in Atlanta disagrees, and denied a preliminary injunction that would block the grants, the Associated Press reports.
“The program being challenged is racially exclusive, thus violating our nation’s civil rights laws,” Blum previously told TechCrunch. “It is to be hoped that other programs like this one end these practices and offer the benefits to all small businesses regardless of the owner’s race.”
Ayana Parsons, a co-partner of Fearless Fund, said the goal of the initiative is to help Black female entrepreneurs gain access to capital and resources.
“When we set out to start we had one clear vision in mind, and that was to change the game for women of color,” said Parson. “Our rationale was simple. These women are the most founded, yet the least funded. They’re starting businesses at a much higher rate than any other demographic. Yet they lack access to capital, access to resources, access to networks,” she continued.
Applicants who win the Fearless Strivers Grant receive $20,000 grants. According to the lawsuit, the program is “open only to Black females,” and the white males behind the lawsuit have a problem with this.
The grant contest runs four times a year. To be eligible, a Black woman must own at least 51% of the business.
Following the judge’s ruling, the fund’s founders rallied outside the courthouse with Rev. Al Sharpton.
“We will continue to run the nation’s first venture capital fund that is built by women of color for women of color,” Fearless Fund CEO and co-founder Arian Simone told a crowd of supporters, per the AP.
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