A recent U.S. appeals court decision has cast a shadow on diversity venture capital funding, particularly affecting Black-owned venture capitalists and women-of-color-led businesses. The 11th Circuit's June ruling found that an anti-affirmative action group's lawsuit against the Fearless Fund, which supports Black women entrepreneurs, would likely succeed. This ruling has had a chilling effect across the small industry of diversity-focused venture capital funds, according to founders. The conservative legal attack on the funds has resulted in another setback for diversity, equity, and inclusion (DEI) initiatives. Despite this, organizations like The BOSS Network and Sage Group PLC are striving to make venture capital funding more equitable, committing $1.5 million to support Black women entrepreneurs.