Says Dozie, her first grant was from the Fearless Fund, and securing that $20,000 made a world of difference for her business. “You take so many losses in business, so you have to really enjoy the wins. This grant gave me the oxygen that I need to keep going,” she recalls. “I needed the money at exactly that time, so there was a big sense of relief too.”
Kane shares a similar sentiment. Since launching KIN Apparel in 2020, she has won five non-dilutive grants totalling around $225,000. “I felt blessed, relieved, reassured, excited, and motivated,” she says. “It meant that I could buy inventory, pour cash into branding and marketing, and stop taking pre-orders. It meant I could build my business without worrying about funding—it was a release of stress.”
“I was one of 20 winners selected from 11,000 applicants,” says Burke-Williams, who received a BOTOX Cosmetic and IFundWomen grant this year. “This gave me a confidence boost. It meant we are on the right track with Ourside, and that what we are building matters.”
Money aside, being the recipient of a grant can also create a sense of community among other winners and the larger organization, which can create powerful networks for Black entrepreneurs. “I do want to give back and share my knowledge with other entrepreneurs about these opportunities,” says Abena Boamah-Acheampong, founder of Hanahana Beauty. “Most of the grants I won not only are beneficial for the financial portion, but also the mentorship and connections.”
Burke-Williams also notes that, on top of capital, her IFundWomen win provided “opportunities for mentorship with the Allergan Aesthetics [Botox’s parent company] executive, past grant recipients, and other women entrepreneurs, as well as crowdfunding opportunities.”
Undefined Beauty’s Morris agrees, recalling that, in addition to being awarded $100,000 from SheaMoisture and New Voices the Next Black Millionaires grant program, she was able to make some new connections, and gained exposure through the brand’s eponymous Roku Channel docuseries that followed the recipient’s respective journeys.
Why Black Founder-Focused Grants Are Under Attack
The so-called racial reckoning of 2020 led to more diversity, equity, and inclusion (DEI) departments and pledges across nearly every industry, but this year, we’re seeing some of these initiatives fall apart. Several tech companies have announced layoffs in these divisions, and within the beauty sector, the American Academy of Dermatology debated eliminating its DEI programs earlier this year, though the proposal to do so was ultimately shut down.
Now, some grants are in the hot seat, with programs like the Fearless Fund currently under attack. “The Fearless Fund is trying to bridge a critical gap in who receives this type of funding, given that the vast majority does not go to women-founded businesses,” says Jennifer Njuguna, Esq, co-CEO of Common Future, an organization that aims to create a more equitable economy. “For example, in 2022, women-founded businesses received 2.1% of venture capital funding.” Likely, it’s even more dismal for Black women: Three years ago, Crunchbase reported that “Black female startup founders have received just 0.34% of the total venture capital spent in the US so far [in 2021].”
Despite these stats, the Fearless Fund was recently sued by the American Alliance for Equal Rights (AAER), which alleged that the Fearless Strivers Grant Contest, which is focused on awarding $20,000 grants to Black women-owned businesses, is a “racially exclusive program” that violates 42 US Code § 1981, which derives from the 1866 Civil Rights Act. “This act prohibits discrimination on the basis of race in making or enforcing contracts,” Njuguna explains, “and it was one of many laws enacted after the Civil War, during the period of Reconstruction, to prevent discrimination and additional types of bondage for Black people.”