Andreessen Horowitz is suspending its Talent x Opportunity (TxO) fund and program, according to four sources familiar with the matter, including several of the program's founders.
In 2020, the company announced TxO to support founders who don't have access to traditional venture networks. Many of TxO's participants are women and minorities, and overall they receive very little venture capital funding.
The fund's announcement comes amid a wave of support that underrepresented founders received after the killing of George Floyd in 2020. TechCrunch previously reported that the fund was launched with an initial contribution of $2.2 million, with a16z co-founder Ben Horowitz and his wife Felicia providing up to an additional $5 million.
TxO provided the founders with access to a technology network, a 16-week training program, and a $175,000 investment through a donor-advised fund managed by the nonprofit Tides Foundation. The program has since supported more than 60 companies, including media brand Brown Girl Magazine, food technology company Myles Comfort Foods, and maternity technology company Villie.
TxO attracted some criticism at its creation because it is technically structured as a nonprofit organization rather than a traditional investment fund. Those who invest in the Fund are considered donors, and the donated funds are considered a charitable contribution rather than a traditional limited partner investment.
Still, founders who participated in the program and spoke to TechCrunch said it provided valuable support and opportunities they wouldn't have access to otherwise. Last year, TxO expanded to launch a grant program, awarding $50,000 to three technology nonprofits supporting underserved founders.
TxO has announced the final members of the program, currently in early March 2025. Founders who participated in the program received an email on October 16th from Kofi Ampadu, a partner at a16z who led TxO, informing them that the program was being suspended.
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“When we started TxO, our mission was clear: to support talented and determined builders who are creating culture-shaping companies but may not have access to the typical networks and resources of Silicon Valley,” Ampadu's email, seen by TechCrunch, said. “While our objectives remain the same, we are pausing our existing programs to refine how we deliver them.”
The rest of the email read:
Over the past five years, we've been experimenting with different models for founders that best serve them, from virtual and in-person programming to curriculum design and funding structures. As we rethink what's next, we'll apply everything we've learned and integrate it with a16z's broader early-stage investing and company-building strategy to evolve the way we support founders.
TxO has supported over 60 companies and nearly 100 founders. Together, you have raised tens of millions of dollars in follow-on funding and reached customers across cultures and lifestyles. The founders of previous groups now advise new groups, and peer support strengthens the community as a whole.
Thank you for being at the heart of this community. Your progress is proof of what is possible. Please look forward to future developments. If you have any questions, please feel free to contact us directly.
thank you,
Kofi
A16z confirmed to TechCrunch that the program was winding down and that Ampadu had alerted participants via email.
At least three members of the TxO staff team besides Ampadu were also laid off, with the last week ending in October, two sources said.
The fund's application didn't specifically require founder diversity, other than “cultural credibility,” and also emphasized classic startup investment criteria such as market size and ability to execute. However, the fund's announcement in 2020 revealed that it is “a fund for entrepreneurs who didn't have access early in life but have great potential. Their products can be non-tech or tech; they must come from underserved communities (we welcome all backgrounds).”
Still, many in the startup world see TxO as an accelerator for diverse talent, and several people who spoke to TechCrunch noted that its hiatus comes as the tech industry's top names eliminate, reduce, restructure, or completely backtrack on previous commitments related to diversity, equity, and inclusion. The Trump administration has threatened legal and political repercussions for companies that support what is considered DEI.
However, some point out that a16z is still interested in accelerator-type startup programs. Earlier this year, the company launched Speedrun, a program that promises to invest up to $1 million to alumni.