a16z pauses its famed TxO Fund for underserved founders, lays off staff

Andreessen Horowitz is pausing its Talent x Opportunity (TxO) fund and program, according to four sources familiar with the matter, including more than one founder in the program.

The firm announced TxO in 2020 to support founders who do not have access to traditional venture networks. Many of TxO’s participants were women and minorities who, overall, receive very slim amounts of venture capital dollars.

The announcement of the fund came during the wave of support that underrepresented founders received in 2020 after the murder of George Floyd. The fund launched with $2.2 million in initial commitments, TechCrunch previously reported, with a16z co-founder Ben Horowitz and his wife, Felicia, matching up to an additional $5 million.

TxO provided founders with access to tech networks, a 16-week-long training program, and a $175,000 investment through a donor-advised fund managed by the nonprofit Tides Foundation. The program went on to support more than 60 companies (like the media brand Brown Girl Magazine, food tech Myles Comfort Foods, and the maternity tech Villie).

TxO garnered some criticism when it launched because it’s technically structured as more of a nonprofit, rather than a traditional investment fund. Those investing in the fund are considered donors, and the money given is regarded as charity donations, rather than traditional limited partner investments.

Still, founders who participated in the program and spoke to TechCrunch said it provided them with invaluable support and opportunities to which they otherwise would not have access. Last year, TxO expanded to launch a grant program, providing $50,000 to three tech nonprofits that support underserved founders.

TxO announced its — as of now — last cohort of the program in early March 2025. Founders who partook in the program received an email on October 16 from Kofi Ampadu, the partner at a16z who led TxO, announcing the program would pause.

“When we launched TxO, the mission was clear: support talented, determined builders who are creating culture-shaping companies but may not have access to typical Silicon Valley networks and resources,” Ampadu’s email read, as seen by TechCrunch. “While that purpose has not changed, we are pausing our existing program to refine how we deliver on it.”

The rest of the email read:

Over the past five years, we’ve experimented with different models for best serving founders — from virtual and in-person programming to curriculum design and funding structure. As we rethink what’s next, we’ll be applying everything we’ve learned and evolving how we support founders by integrating with a16z’s broader early-stage investing and company building strategy.

TxO has backed more than 60 companies and nearly 100 founders. You have collectively raised tens of millions in follow-on capital and reached customers across culture and lifestyle. Founders from earlier cohorts now advise newer ones, and that peer support has strengthened the entire community.

Thank you for being at the center of this community. Your progress is proof of what is possible. Stay tuned for what comes next. In the meantime, if you have any questions, please don’t hesitate to reach out directly.

Best regards,

Kofi

A16z confirmed to TechCrunch that the program was shutting down and that Ampadu alerted participants via email.

Members of the TxO staff team, which had at least three people, excluding Ampadu, were also let go, according to two sources, with the end of October being their last week.

The fund’s application documents did not specifically call for founder diversity, except in terms of “cultural authenticity,” and also emphasized classic startup investment criteria like size of the market and ability to execute. But the announcement of the fund back in 2020 made clear it was “for entrepreneurs who did not have access to the fast track in life but who have great potential. Their products can be non-tech or tech; they should be from underserved communities (all backgrounds welcome).”

Still, many in the startup world perceived TxO as an accelerator for diverse talent, and several people who spoke to TechCrunch pointed out that its hiatus comes as top names in tech eliminate, cut, reframe, or completely walk back on prior public commitments related to diversity, equity, and inclusion. The Trump administration has threatened legal and political ramifications for businesses supporting anything that could be seen as DEI.

Others, however, noted that a16z is still interested in accelerator-type startup programs. Earlier this year, it launched Speedrun, a program that promises cohort grads up to $1 million of investment.