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A venture capital grant program for Black women officially ends after court ruling

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A venture capital grant program for Black women officially ends after court ruling

The Fearless Fund, an Atlanta-based venture capital firm, will shutter its grant program for Black women as part of a settlement, ending a year-long affirmative action battle. Here, co-founders and CEOs of The Fearless Fund Arian Simone (center left) and Ayana Parsons (center right) speak to journalists outside federal court in Miami on Jan. 31.

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The Fearless Fund, an Atlanta-based venture capital fund, announced it will permanently close its grant program for Black women business owners after a year-long battle over racial discrimination.

In a Wednesday court filing, attorneys representing conservative activist Edward Blum and the Atlanta-based venture fund wrote that both parties “have settled,” asking the court to permanently dismiss the case.

Both parties said the Fearless Fund agreed to permanently close its Fearless Strivers Grant contest, which awards $20,000 to small businesses led by at least one woman of color and other requirements.

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“As of today, the Fearless Fund has permanently closed the grant contest and will never reopen it,” the American Alliance for Equal Rights, a conservative group founded by Blum, told NPR in a statement Wednesday.

“The American Alliance for Equal Rights encouraged the Fearless Fund to open its grant contest to Hispanic, Asian, Native American and white women, but Fearless has decided instead to end it entirely,” the statement added.

Alphonso David, one of the lead attorneys representing the Fearless Fund, told NPR that the settlement is a “positive outcome” for the capital firm.

“The agreement is very narrow and does not restrict or relate to any other investment or charitable activity of the Fearless Fund or the Foundation going forward,” David said. “The Fearless Fund can now continue their work toward expanding economic opportunity.”

The settlement between the venture firm and the conservative group ends one of the most high-profile affirmative action cases in recent years. It also comes as diversity, equity and inclusion initiatives at universities, businesses and other organizations have come under attack.

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In August 2023, the American Alliance for Equal Rights sued the Fearless Fund and its foundation over the Strivers Grant, alleging it was “racially discriminatory” against non-Black business owners.

The National Venture Capital Association, a trade group with hundreds of member venture capital firms, filed an amicus brief defending the Fearless Fund’s grant program. The trade group called the grant program a “modest but important” step toward creating equal opportunity for Black women. Only 2% of investment professionals at venture capital firms were Black women in 2022, according to a Deloitte and Venture Forward study.

However, in a 2-1 ruling in June, a U.S. federal court of appeals suspended the venture firm’s program and ruled against Fearless Fund. The ruling also reversed a federal judge’s ruling last year that the contest for the $20,000 grant should continue, saying that Blum’s lawsuit was likely to fail.

Conservative activist Edward Blum speaks at a news conference in Washington, D.C., on June 29, 2023.

Conservative activist Edward Blum speaks at a news conference in Washington, D.C., on June 29, 2023.

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Blum applauded the June ruling, saying that such programs, like the Strivers Grant, “exclude certain individuals because of their race” and are “unjust and polarizing.”

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Blum, 72, has worked for years to overturn affirmative action policies in colleges and universities. In 2023, he won a major legal victory when the Supreme Court effectively ended race-conscious policies in higher education.

In addition the lawsuit against the Fearless Fund, the Alliance has also filed at least nine other suits against companies and organizations — such as Southwest Airlines, Amazon, Meta and the Smithsonian’s National Museum of the American Latino over racial requirements and efforts.

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Japan gears up for ‘wild west’ leadership race

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Japan gears up for ‘wild west’ leadership race

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A record number of candidates are vying to become Japan’s next prime minister, as the country confronts rising prices, escalating tensions in the Pacific and uncertainties surrounding a possible second Donald Trump presidency in the US.

The contest for the leadership of the Liberal Democratic party — which has ruled Japan for all but a few years of the postwar period — followed incumbent Fumio Kishida’s decision last month to resign after three years as he battled low approval ratings and public dismay over the state of the economy.

The unusually wide-open race kicks off on Thursday with an unprecedented nine candidates and could crown Japan’s youngest-ever prime minister or its first female leader when it concludes on September 27.

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The size of the field attests to upheaval within the ruling bloc, analysts said, as the LDP searches for a standard-bearer who can plausibly lead the party into a general election that must be called by the end of October 2025.

“This first round will be the wild west. There are candidates that are running who know they don’t have a shot,” said Tobias Harris, the founder of political risk advisory firm Japan Foresight. “It is also an election where people who have the strongest CVs do not necessarily advance.”

The candidates include the arch-conservative former economic security minister Sanae Takaichi who has cited Margaret Thatcher as a role model; former foreign minister Toshimitsu Motegi who has been dubbed “Japan’s Trump whisperer”; outspoken former defence and foreign minister Taro Kono, who began his current stint as digital minister by declaring a war on floppy discs; and Yoko Kamikawa, the current foreign minister who ordered 16 executions during her time as justice minister.

The early favourites, according to political analysts and media polls, are former defence minister Shigeru Ishiba and Shinjiro Koizumi, the 43-year-old son of one of Japan’s most charismatic but controversial leaders, Junichiro Koizumi, who pushed Post Office privatisation and other reforms in the early 2000s.

Sanae Takaichi, Japan’s economic security minister © Toru Hanai/Bloomberg

The frontrunners face significant resistance: Koizumi because of his inexperience, and Ishiba from political enemies he has accumulated over his long career and repeated attempts to secure the LDP leadership. Senior party figures said Koizumi’s youth could also prove an advantage, as the LDP’s elite saw greater opportunity to influence his administration.

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Whoever succeeds Kishida will face a vexing economic backdrop. While Japan is exiting decades of low growth and deflation, price rises combined with a weaker yen have weighed on household finances, while the Bank of Japan’s introductory interest rates rises last month spurred a bout of extreme market volatility.

Tokyo has also taken on a more assertive security role in the Pacific, raising defence spending and deepening co-operation with the US and other regional allies such as South Korea in the face of more hostile Chinese conduct — tensions that could be further inflamed during a second Trump term.

The leadership contest will initially be decided by a combination of LDP parliamentarians and about 1mn rank-and-file party members. If no clear winner emerges, a second round of voting, only by MPs, will choose between the two leading candidates.

At the core of the race is public exhaustion after 12 years of LDP politics, including disappointment with the “Abenomics” reforms of the country’s longest-serving prime minister, Shinzo Abe, according to analysts.

While polls suggest that Japan’s main opposition party, the Constitutional Democratic Party of Japan, poses little electoral threat, people close to the LDP leadership said it was looking for a figure to reinvigorate the party as a force of energy and renewal. “Is there someone in the field who can make people forget their exhaustion with this government?” said Harris of the LDP’s thinking.

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The contests will also be particularly unpredictable, political analysts said, because the party’s traditional selection mechanisms — factions controlled by influential supremos — are disintegrating in the wake of a political funding scandal.

The factions were officially disbanded under Kishida in an attempt to publicly atone for revelations of large slush funds. But in doing so the LDP eliminated an organisational force that previously winnowed the field of aspirants.

Without factions marshalling votes, ambitious candidates have been freer than at any time in the past to canvass for parliament members’ endorsements.

“The iron control of the factions is no longer there and so people within the party see this as their big chance,” said Jeff Kingston, a political scientist at Temple University. “Right now in the LDP, if you have ambitions and think you’ve earned it, you throw your hat in the ring.”

Yu Uchiyama, a political scientist at the University of Tokyo, noted that apart from divisions on issues such as the budget deficit or gender equality, none of the leading candidates had put forward a distinctive agenda or ideology, with a narrow range of positions on foreign policy and regional security.

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Uchiyama added that the weakened factions were likely to be a temporary phenomenon. He predicted that a second round of voting by MPs would see clusters forming that resembled the old factions.

“Lots of times when the LDP declared the factions were gone, they revived,” said Uchiyama.

Others see the contest as a sign of malaise in Japanese politics as a result of the LDP’s dominant hold on the political landscape. 

“As always, the LDP leadership contest is a scam,” said Koichi Nakano, a political scientist and affiliate at the Weatherhead Center for International Affairs at Harvard University. “It is a pretence that Japan gets its leaders through a democratic process, but the reality is that leaders are chosen for the country through a very narrow and tightly controlled system.”

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Video: Harris Put Trump on Defense at the Presidential Debate

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Video: Harris Put Trump on Defense at the Presidential Debate

Vice President Kamala Harris baited traps for Donald J. Trump in their debate on Tuesday night — and he walked right into them, spinning into conspiracy theories. But did she say enough about her plans? Jonathan Weisman, a politics reporter for The New York Times, gives his analysis of how each candidate fared in the ABC News presidential debate.

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Donald Trump’s camp reels after debate injects new doubt into re-election bid

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Donald Trump’s camp reels after debate injects new doubt into re-election bid

Donald Trump’s campaign is reeling after his poor performance in the debate against Kamala Harris exasperated Republican allies who thought he had been unprepared, outplayed by the vice-president, and delivered erratic messages to voters. 

The televised face-off in Philadelphia on Tuesday — watched by nearly 60mn Americans, according to preliminary Nielsen estimates — marked a new campaign inflection point that could hurt Trump, who is now battling to regain his footing with less than two months left before the November 5 US presidential election.

“I think it was a missed opportunity to knock her out . . . She was losing momentum. I think it probably stabilised her,” a top Trump donor told the Financial Times.

Although Republican strategists and lawmakers did not think Trump’s uneven performance had crippled his campaign, many conceded the former president had struggled and that his re-election bid now looked more tenuous. 

“The biggest frustration about his performance is he took the bait on nonsense stuff, which prevented him from closing the deal. So definitely a missed opportunity,” said one senior Republican strategist close to Trump.  

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“Maybe he was overconfident. Maybe he didn’t prepare. Maybe he was just tired,” said John Catsimatidis, the billionaire New York City grocery magnate and Trump donor. 

Catsimatidis also conceded that the vice-president had performed “much better than people expected” in the debate. “She kept her mouth shut for the last three months. Everybody thought that she was not capable of debating.”

Harris put Trump on the defensive for much of the 90-minute debate on Tuesday night, starting with an unexpected handshake between the two leaders — who had never met — before she tore into him over issues from abortion to his reputation with foreign leaders.

The former president appeared rattled at several points, including when Harris questioned the size of the crowds at his campaign rallies. Trump railed about migrants in response, rehashing an internet conspiracy theory that some were stealing people’s pets to eat them.

The debate had shown “Trump at his absolute worst”, said Frank Luntz, the veteran pollster who has worked for many Republicans over the years.

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“He was given so many opportunities . . . every time inflation could have been raised, he chose to divert to a different issue,” Luntz said “Did [Harris] rattle him? Absolutely. Should he have been rattled? No way. But it is who he is.”

Luntz said Trump had “no choice” but to seek another televised showdown offered by Harris’s campaign, although the Republican candidate has not said if he will take part. “He has to recover. He has to give people a reason not to see this as his defining moment.”

On Wednesday morning, Trump and Harris appeared together at a ceremony to commemorate the September 11 2001 attacks in New York City, and shook hands again.

But minutes earlier, Trump had called into a morning television show on Fox News, insisting he “did great” and that the debate had been “rigged” against him, accusing the debate’s moderators at ABC News of being “dishonest” and saying their broadcasting licence should be revoked. 

A CNN poll conducted by SSRS immediately after the debate found 63 per cent of 605 people who watched it thought Harris had won, compared with 37 per cent for Trump. Before the debate, a panel of voters was evenly split, 50-50, on which candidate would perform better.

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A YouGov poll from Wednesday of more than 3,300 people found 43 per cent thought Harris had laid out a clearer plan, with 32 per cent saying Trump had, and 24 per cent were unsure.

Betting markets also moved sharply in Harris’s favour during the debate. While Harris and Trump entered Tuesday night with similar odds, traders predicting the winner of the presidential election gave the vice-president a seven-point advantage over the former leader by the end of the night.

Even some of Trump’s top allies in Congress conceded that Harris had scored some points against the former president. “Kamala Harris? She knows how to needle people,” said Byron Donalds, the Florida Republican congressman, after the debate.

“[She] answered the question of can she stand on the stage and look the part, OK. But where was the policy, where was the leadership? She dodged and deflected on her own record,” he added. 

According to the FT’s national poll tracker, Harris had a slim 2.1 percentage point lead over Trump on Tuesday before the debate, with tight races in all of the key battleground states. 

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The senior Republican strategist said that, despite their concerns, Trump’s poor showing was “unlikely to drastically move the race”. “She was better than passable, but hardly a knockout,” the strategist said of Harris. 

It remains unclear whether Trump will agree to a second presidential debate. Jen O’Malley Dillon, Harris’s campaign manager, signalled late on Tuesday that the vice-president would be willing to participate in another face-off next month.

Yet Trump on Wednesday expressed reservations to Fox News, which has proposed three possible debate dates in October.

“I don’t know that I want to do another debate,” Trump said. “I’d be less inclined to because we had a great night.”

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