The case against the venture capital firm Fearless Fund officially went to court on Wednesday.
According to AP News, the attorneys representing the VC firm gave their initial oral arguments on the case in the federal appeals court in Miami.
At the hearing, a conservative dominated panel led the hearing which is set to determine whether the grant dedicated to Black women-owned businesses can temporarily continue for the remainder of the lawsuit or stay suspended.
Judge Kevin Newsom, an official appointed by Trump, reportedly opposed the Fearless Funds’ statement that their program is protected by the First Amendment by echoing the claims of conservative activist Edward Blum at the hearing.
Per AP News, he asked the lawyers representing Fearless Fund if it would apply if the grant was only available to white applicants. Attorney Jason Schwartz promptly responded, highlighting that nonprofits with a cause differ from those that offer a commercial aspect.
“If the Fearless Fund is not allowed to give grants to Black women consistent with their mission, it calls into question every other charitable organization doing the same thing,” said attorney Alphonso David who’s representing the Fearless Fund, at a press conference per CNN. “That’s why this case is important to them and that’s why this case should be important to everyone else in this country.”
Following the lawsuit filed against them by the conservative American Alliance for Equal Rights, co-founder Arian Simone also reported that the Fearless Fund has had issues with receiving new investments through partnerships.
The increased attacks on grants devoted to Black women owned businesses signify an increased difficulty for these businesses to secure capital for their ideas.
According to the latest report released by Morgan Stanley, Black women already receive only 0.34% of venture capital money for their businesses. Overall, companies founded by women receive only two percent of funds.
In recent years, outlets have also reported a substantial decline in funding for Black entrepreneurs. Per a report by CNBC, although there was a rise in funds due to companies making promises after the Black Lives Matter protests, there was a 45% decrease in financial support for Black business owners in 2022.
“We are here fighting them to say, ‘can we at least have 1%?’ They’re saying, no, we want all the pie,” civil rights attorney for Fearless Fund, Ben Crump, per a news conference.“That’s why this case is so consequential and so landmark, because it will have a chilling effect not only on women and women of color, but even diversity in America.”
