The Associated Press reports that Atlanta-based venture capital firm Fearless Fund faced intense scrutiny from conservative judges on Jan. 31, defending its grant program supporting Black-women-owned businesses. Previously sued by Edward Blum's AAER group in August 2023 for alleged racial exclusion, Fearless Fund now seeks to lift an injunction on its Strivers Grant Contest, a $20,000 grant for primarily Black women-owned businesses.

A conservative-leaning panel in Miami, FL, is deliberating whether to suspend the grant until the lawsuit concludes. Judge Kevin Newsom challenged Fearless Fund's claim that the First Amendment protects grants as charitable donations, expressing skepticism about their arguments of non-discrimination given the fund's role as a minor player in venture funding.

Fearless Fund attorney, Jason Schwartz, defended the fund's ability to select projects based on issues they aim to address, stating, "In the context of small giving, you can’t say it’s not remedial just because it’s not solving everyone’s problems. The answer can’t possibly be given to everyone or no one."

Civil rights activists warn that dismantling the program could jeopardize support for underserved groups. Digitalundivided notes that less than 1% of venture capital funding reaches businesses owned by Black and Hispanic women.

Despite the backing of major companies like J.P. Morgan Chase & Co., Bank of America, and Mastercard, Fearless Fund, led by CEO Arian Simone, reveals challenges in securing new investments post-lawsuit. Simone explains, "When people hear lawsuits, sometimes the spirit of fear has gotten to them. So yes, we have been financially impacted by this lawsuit. We were looking for upwards of about eight figures of investments that fell through this past fall."