In recent news, Ayana Parsons, the co-founder of a venture capital firm called Fearless Fund based in Atlanta, has stepped down from her position as chief operating officer. The Fearless Fund was established in 2019 by Parsons and Arian Simone with the goal of supporting women of color in the business world, who often face racial disparities in funding. Parsons confirmed her decision to step down in a statement, asserting that it was unrelated to a lawsuit targeting the grant program for Black women entrepreneurs run by the Fearless Fund’s foundation arm. Despite stepping down as COO, Parsons will remain an investor in the firm and expressed her commitment to advancing women and people of color through new strategies and tactics.
The lawsuit in question, filed by the American Alliance for Equal Rights last year, has attracted attention as a symbol of a conservative backlash against corporate diversity programs. Led by conservative activist Edward Blum, the lawsuit challenges the grant program for Black women entrepreneurs, alleging that it is discriminatory. A federal appeals court panel recently ordered the suspension of the grant program for the duration of the lawsuit, citing the likelihood of the lawsuit prevailing. The Fearless Fund, which has invested nearly $27 million in 40 businesses led by women of color, has faced challenges in raising new investment amid the legal battle.
The Fearless Fund has received support from prominent companies such as J.P. Morgan Chase & Co., Bank of America, and Mastercard since its launch in 2019. Some of the companies backed by the Fearless Fund include Slutty Vegan, a restaurant chain, and Thirteen Lune, an e-commerce platform that promotes beauty brands created by people of color. Arian Simone, the CEO of the Fearless Fund, acknowledged Parsons’ contributions to advising portfolio companies before her departure. Simone expressed sadness at seeing Parsons leave but wished her the best in her future endeavors, noting that Parsons had dedicated countless hours to supporting the fund’s portfolio companies.
The lawsuit specifically targets the Fearless Foundation’s Strivers Grant Contest, which grants $20,000 to businesses run by Black women. Edward Blum argues that the contest violates a section of the Civil Rights Act of 1866 that prohibits racial discrimination in contracts. However, lawyers for the Fearless Fund maintain that the grants are not contracts but donations protected by the First Amendment. In her statement, Simone emphasized Parsons’ dedication to the fund and expressed well wishes for her as she pursues new opportunities. Parsons, along with her husband, founded Yardstick Management, a consulting firm for underrepresented business leaders, which they sold in 2023 after 11 years. Parsons mentioned that she plans to work on her first book and enjoy time with her family in the Caribbean while continuing to advocate for freedom and equality.
