Fearless Fund’s Strivers Grant Program: A Troubled Journey
Fearless Fund’s Strivers Grant Program, which aims to support Black women-owned small businesses, finds itself in a precarious situation. Documents suggest that the program was already “at risk” before being hit with a lawsuit by Edward Blum’s American Alliance for Equal Rights (AAER) in August. The program, sponsored by Mastercard, faced funding challenges even before the legal battle began.
Key Takeaway
Fearless Fund’s Strivers Grant Program was already in danger due to funding challenges before the AAER lawsuit was filed against it. Mastercard had cut funding to the program, putting its future in jeopardy.
Funding Challenges and Changes
In June, prior to the lawsuit, Fearless Fund’s foundation arm considered the Strivers Grant Program “at risk” during a company offsite. The documents revealed that Mastercard had reduced funding for the grant program despite initially pledging support for five years. It seemed that Mastercard had lost its passion for the original cause. The briefing document also mentioned various department changes within Mastercard, although the direct impact on funding remains unclear.
The AAER Lawsuit and Temporary Injunction
Adding to the program’s woes, the AAER filed a historic lawsuit against the Strivers Grant Program, alleging discrimination against non-Black founders. The lawsuit accuses the program of exclusively offering grant money to Black women, limiting opportunities for others. A judge has issued a temporary injunction, preventing Fearless Fund from awarding the grant indefinitely.
Responses from Fearless Fund and Mastercard
When questioned about Fearless Fund’s current collaboration with Mastercard, Arian Simone, the co-founder and CEO of Fearless Fund, did not provide a direct response. Instead, she emphasized the organization’s commitment to providing women of color with access to capital. Mastercard also avoided addressing its ongoing partnership with Fearless Fund directly but stated that its commitment to supporting small business owners and underserved communities remains unchanged.
Mastercard’s Initiatives and Commitment
The collaboration between Mastercard and Fearless Fund began in 2021 with the launch of the Strivers Grant Program. The program was part of Mastercard’s “Strivers Initiative,” which aimed to highlight the achievements of Black women business owners. In 2020, Mastercard committed $500 million to invest in the Black community, aiming to address the racial wealth gap. This decision came amidst increased pressure on organizations to support the Black community following the murder of George Floyd.
Program Revamp Plans and Uncertain Partnerships
The briefing document from June revealed Fearless Fund’s intention to revamp the Strivers Grant Program. Plans were in place for strategic planning sessions with Mastercard in October, with the goal of strengthening their partnership. Fearless Fund sought to extend the partnership for two additional years. In the same month, Fearless Fund’s venture arm secured a multimillion-dollar follow-on round for its second fund, with Bank of America, Costco, and Mastercard as investors. The impact of AAER’s lawsuit on Fearless Fund’s relationship with Mastercard and other partners remains uncertain.
The Strivers Grant Program now finds its future hanging in the balance. The ongoing legal battle, coupled with the funding challenges faced by Fearless Fund, has cast a cloud of uncertainty over this initiative that aimed to empower Black women in the world of entrepreneurship.
