a16z pauses its famed txo fund for underserved founders, lays off staff

Andreessen Horowitz Pauses Talent x Opportunity Fund

Andreessen Horowitz is temporarily suspending its Talent x Opportunity (TxO) fund and associated program, as reported by four individuals with knowledge of the situation. This includes multiple founders who were actively involved in the program.

The TxO initiative was initially unveiled in 2020 with the goal of providing support to entrepreneurs lacking access to established venture capital networks. A significant portion of TxO’s participants represented women and minority groups, demographics historically underrepresented in venture funding.

Fund Launch and Initial Commitments

The fund’s announcement coincided with a broader surge of support for underrepresented founders following the events of 2020. Initial commitments to the fund totaled $2.2 million, as previously detailed by TechCrunch. Ben Horowitz, a co-founder of a16z, and his wife, Felicia, pledged to match up to an additional $5 million in funding.

TxO offered founders access to valuable tech networks, a comprehensive 16-week training curriculum, and a $175,000 investment facilitated through a donor-advised fund managed by the Tides Foundation. Over 60 companies benefited from the program, including Brown Girl Magazine, Myles Comfort Foods, and Villie, a maternity tech company.

Nonprofit Structure and Program Benefits

The program’s structure, technically operating as a nonprofit rather than a conventional investment fund, drew some scrutiny upon its launch. Investments were considered charitable donations rather than traditional limited partner investments.

Despite this structure, founders who participated consistently highlighted the program’s invaluable support and access to opportunities they would likely not have otherwise received. Last year, TxO expanded its reach by introducing a grant program, awarding $50,000 to three tech nonprofits dedicated to supporting underserved founders.

Program Pause and Communication

The most recent cohort of the program was announced in early March 2025. On October 16th, founders received an email from Kofi Ampadu, the a16z partner leading TxO, informing them of the program’s pause.

Ampadu’s email, reviewed by TechCrunch, reiterated the program’s original mission: “to support talented, determined builders who are creating culture-shaping companies but may not have access to typical Silicon Valley networks and resources.” He further stated the pause was intended to “refine how we deliver on it.”

a16z has confirmed to TechCrunch that the program is indeed being paused, and that participants were notified via email.

Staffing Changes and Investment Criteria

According to two sources, members of the TxO staff team – consisting of at least three individuals excluding Ampadu – have been let go, with their final week of employment being the end of October.

While the fund’s application documents did not explicitly prioritize founder diversity, they did emphasize “cultural authenticity” alongside standard startup investment criteria such as market size and execution capabilities. The initial announcement in 2020, however, clearly stated the fund was “for entrepreneurs who did not have access to the fast track in life but who have great potential” and welcomed applicants “from underserved communities (all backgrounds welcome).”

Broader Trends and Future Programs

Many within the startup ecosystem viewed TxO as an accelerator for diverse talent. Several individuals who spoke with TechCrunch noted that the program’s hiatus aligns with a broader trend of prominent tech companies scaling back or retracting prior commitments to diversity, equity, and inclusion (DEI). The Trump administration’s potential legal and political repercussions for DEI initiatives have also been cited.

However, a16z continues to demonstrate interest in accelerator-style programs. Earlier this year, the firm launched Speedrun, a program offering up to $1 million in investment to its graduates.