Benjamin Crump leads appeal for black-led grant program embroiled in civil rights controversy

By stacey jackson

13 December 2023

The American Alliance for Equal Rights sued the Fearless Fund, arguing that funding reserved for black women violated civil rights laws.

Legal representatives of the Black Women-Led Atlanta Grant Program filed an appeal on December 6, contesting the racial discrimination lawsuit. The American Alliance for Equal Rights (AAER) previously sued the Fearless Fund in federal court, arguing that its venture capital grants reserved only for black women violate civil rights laws.

In an appeal led by renowned civil rights lawyer Benjamin Crump, the founders of the Fearless Fund argued that they acted legally to address systemic discrimination.

“The coalition seeks to stop a program designed to close the glaring funding disparities faced by Black women entrepreneurs due to historical inequities,” the appeal states. 11 alive,

The news outlet reported a statement issued by the Fearless Fund to defend its actions: “Women of color-owned businesses are a vital, growing sector to our economy, yet they receive less than one percent of venture capital funding. Less has been received,” said Ariane Simon, CEO and founding partner of the Fearless Fund. “Our legal team filed a brief in support of our First Amendment right to express our viewpoint that these women of color-owned businesses need support and we are providing support through the Fearless Foundation’s Strivers Grant Program. Are associated with them. We will fight fearlessly to protect these businesses, the dreams of their founders, and their right to express this vision against any and all legal challenges.

The Fearless Fund aims to combat racial and gender biases that limit venture capital for women of color-owned startups. However, the AAER lawsuit reflects the broader national debate over affirmative action policies. Fearless Fund General Partners Simon and Ayanna Parsons created the grant and mentorship program after struggling to access capital for their own ventures. “As Black women, we faced more obstacles than other demographics in financing our dreams,” Simone explained.

The appeal cites 2019 Census Bureau data showing that 12.7% of women-owned firms were Black or African American owned, demonstrating the need to nurture this demographic of entrepreneurs. It argues that the Fearless Fund’s targeted approach does not violate the First Amendment or federal civil rights protections. The legal document makes a moral case for promoting opportunities for Black women entrepreneurs who face systemic barriers.

“The purpose of our grants is to empower innovators who may lack the networks and resources to turn their ideas into thriving businesses,” Parsons said. “We welcome the opportunity to defend this mission in court.”

The pending lawsuit has already disrupted the 2023 grant, forcing the fund to revise the official rules. Oral arguments are scheduled to begin on January 31, 2024.

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Source: www.blackenterprise.com