by John Reid

Earlier today, the U.S. Court of Appeals for the 11th Circuit blocked Fearless Fund, a Black-owned venture capitalist firm, from providing grants exclusively to Black women entrepreneurs.

An appeals court in Atlanta upheld a preliminary junction, and in a 2-1 vote, the judges ruled the Fearless Fund’s Strivers Grant Contest is “substantially likely to violate” the provisions of Title 42 of the U.S. Code, which ensure equal rights under the law and prohibits the use of race when awarding and enforcing contracts.

Fearless Fund, which was providing Black women entrepreneurs up to $20,000 in funds through their programs, claimed the grant was a charitable donation and should be protected under the First Amendment. Arian Simone, the CEO of Fearless Fund, released a statement:

““America is supposed to be a nation where one has the freedom to achieve, the freedom to earn, and the freedom to prosper. Yet, when we have attempted to level the playing field for underrepresented groups, our freedoms were stifled,” Simone continued. “We must keep up this fight for the next generation of girls who deserve to grow up in an America that lets them realize their dreams instead of outlawing them.” 

Back in September 2023, the 11th Circuit Court of Appeals in Atlanta granted the American Alliance for Equal Rights, a conservative organization founded by Edward Blum. Blum has been known to overturn affirmative action programs in universities. Fearless Fund challenged the injunction in January, but it was found to violate the 1866 Civil Rights Act. Although the ruling halts the grant distribution, Fearless Fund could argue the merits of the case, according to Dar’Shun Kendrick, a lawyer and Georgia State Representative, told TechCrunch.

Still, the ruling could be a setback for minority-owned startups and venture capitalists who are looking to help provide those who have been blocked from seeking funds elsewhere.