The Fearless Fund has decided to terminate a grant program dedicated to Black women, concluding a highly publicized legal case against corporate diversity, equity, and inclusion efforts.

As part of the settlement, the Fearless Fund has permanently shut down its Fearless Strivers grant competition.

In June, the 11th Circuit U.S. Court of Appeals intervened and prohibited the Fearless Fund from granting $20,000 to businesses owned by Black women while the legal matter was ongoing, siding with Edward Blum, an activist opposed to affirmative action, who argued that the grant program was discriminatory.

“Programs that limit participation by race, like the one offered by the Fearless Fund, are contentious and unlawful,” stated Blum, who is the president of the American Alliance for Equal Rights.

Blum suggested that the Fearless Fund expand its grant criteria to include Hispanic, Asian, Native American, and white women, but the Fearless Fund opted to discontinue the program completely.

The Fearless Fund is a relatively minor entity in the venture capital scene, and it implemented the grant initiative to help increase limited venture capital access for Black women.

This legal settlement prevented a Supreme Court ruling that could have significantly impacted race-based programs in the private sector, as pointed out by civil rights attorney Ben Crump, who represented the Fearless Fund.

Crump mentioned that the settlement “preserves programs aimed at supporting underrepresented business owners, ensuring they can continue to fulfill their important roles.”

Additionally, the Fearless Fund has launched a $200 million loan program designed to aid “under-resourced entrepreneurs.”

“This initiative showcases their commitment to promoting fairness and providing opportunities for historically disadvantaged individuals,” Crump said.

The case involving the Fearless Fund forms a part of a larger movement against “woke” initiatives by activists who have shifted their focus to the corporate sector after last year’s significant Supreme Court ruling against race-based admissions in colleges.

While this ruling does not directly apply to businesses, conservative activists have seized upon the Supreme Court’s decision to argue crucial questions regarding how companies manage workplace inequality. As a result, there has been a rise in legal challenges against DEI programs across the country.

The Fearless Fund, which was established by Black women, aims to support Black entrepreneurs who previously received a mere fraction of the overall venture capital funding, which totaled $215 billion last year.