Policy & Fearless Fund
4 min read · Nov 3, 2023
New Power Labs
Tl;dr - The right policy can help to unlock capital to underfunded leaders and communities. Conversations at the Sustainable Finance Forum in Ottawa revealed that it is more important than ever for us to match our words with action to build enabling policies.
Yesterday, I moderated a panel on Policy Changes for a More Inclusive, Sustainable Financial System with sector colleagues Isaac Olowolafe (Dream Maker Inc and BKR Capital) and Usha Srinivasanth (Brampton Venture Zone by TMU) at the 2023 Sustainable Finance Forum in Ottawa.
We explored policy opportunities that unlock capital and capacity to underfunded and overlooked leaders and communities. These policies span from government to institutions, and across the ecosystem from start-up to scale-up. We discussed inclusive policy-making that values and integrates lived experiences, while embracing representation to address the unique challenges faced by underrepresented communities. We explored policy that has worked — from targeted financing initiatives to infrastructure investments — and policies and approaches that failed to drive long term change in inclusive finance. In refining and adapting policies to be more effective, data-driven insights and research is crucial.
As we all work to take meaningful steps forward to enable inclusive capital, there are groups that are working to reset these advancements. During the panel, we touched on what is happening in the US to the Fearless Fund. Fearless Fund describes itself as "built by women of color for women of color."
Earlier this month, a federal appeals court blocked Fearless Fund from moving forward with a program that awards $20,000 to businesses run by Black women. The case is led by the anti-affirmative action activist behind the successful US Supreme Court challenge to race-conscious college admissions policies — Edward Blum's American Alliance for Equal Rights. Yes, this is the name of the organization suing Fearless Fund — also a reminder that equality does not mean equity.
Recall that less than 1% of all venture capital goes to Black women and less than 2% goes to Black founders overall.
Fearless Fund’s nine hundred and fourteen-page response is one option to learn more — or a summary can be found in their Forbes article.
The lawsuit is just one of many that Blum's group has filed. A few days ago, Blum's American Alliance for Equal Rights sued US law firm Winston & Strawn in Houston federal court, after urging it to alter a fellowship program for law students designed to bolster diversity at the firm. There was a similar lawsuit in Canada earlier this year (more to come on this).
Our collective progress in supporting historically underfunded and overlooked leaders and communities is at risk. It is more important than ever that we match our words with action. For the Social Finance Fund, we believe this means transparency in all investments and capital flows. This work needs to start today, not tomorrow, to ensure that this landmark commitment by the Federal government does not end up replicating the traditional venture capital world in who gets funding and an opportunity to build. We have a collective opportunity to do better.
Contributed by: Narinder Dhami
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