Sources say Andreessen Horowitz is hitting pause on its Talent x Opportunity (TxO) fund and initiative, including multiple founders involved in the program.
TxO was unveiled by the firm in 2020 to back founders lacking typical venture network access. TxO saw participation from many women and minorities, who typically only secure very small amounts of venture capital.
The fund’s announcement coincided with the surge in support for underrepresented founders in 2020 following George Floyd’s death. TechCrunch previously reported that the fund kicked off with initial commitments of $2.2 million, with a matching contribution of up to $5 million from a16z co-founder Ben Horowitz and his wife, Felicia.
TxO granted founders access to technology networks, a 16-week training course, and a $175,000 investment via a donor-advised fund overseen by the Tides Foundation. Over time, the program backed more than 60 companies (including media company Brown Girl Magazine, food tech company Myles Comfort Foods, and maternity tech company Villie).
Upon its launch, TxO drew some criticism due to its structure as a nonprofit, rather than a standard investment fund. Those who invested in the fund were seen as donors, and their contributions were considered charitable donations, rather than traditional limited partner investments.
However, founders who were a part of the program and spoke with TechCrunch emphasized that it offered them essential support and opportunities that would have otherwise been out of reach. TxO expanded last year, introducing a grant program that awarded $50,000 to three tech nonprofits supporting underserved founders.
TxO revealed what is currently its last program cohort in early March 2025. Participants in the program received an email from Kofi Ampadu, the a16z partner in charge of TxO, on October 16, in which he announced the program’s suspension.
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As stated in Ampadu’s email, which TechCrunch viewed, “When we launched TxO, our goal was clear: to support talented, determined builders creating culture-shaping companies who might lack access to typical Silicon Valley networks and resources. While that goal remains, we are suspending our current program to improve our method of achieving it.”
The email continued:
Over the past five years, we’ve been testing various models for serving founders best — including virtual and in-person programming, curriculum design, and funding structure. As we re-evaluate our next steps, we’ll use everything we’ve learned and change how we support founders by integrating with a16z’s wider early-stage investing and company building strategy.
TxO has supported over 60 companies and almost 100 founders. Together, you have secured tens of millions in follow-on capital and reached customers across culture and lifestyle. Founders from earlier groups are now advising those who are newer, and this peer support has made the whole community stronger.
Thank you for being so important to this community. Your achievements prove what is possible. Keep an eye out for updates. If you have questions in the meantime, please feel free to contact us directly.
Best wishes,
Kofi
A16z verified with TechCrunch that the program was ending and that Ampadu informed participants via email.
Sources also stated that members of the TxO team, consisting of at least three individuals apart from Ampadu, were also dismissed, with their final week being the end of October.
The fund’s application documents emphasized standard startup investment factors such as market size and execution ability, and did not specifically mention founder diversity, other than “cultural authenticity.” However, the fund’s 2020 announcement clarified that it was “for entrepreneurs with great potential who lacked access to the fast track. They could be from underserved communities (all backgrounds welcome) and their products could be tech or non-tech.”
Nonetheless, many in the startup ecosystem saw TxO as a diversity accelerator, and several sources who spoke to TechCrunch noted that its pause comes as leading tech companies eliminate, reduce, reword, or completely retract previous public promises regarding diversity, equity, and inclusion. The Trump administration has suggested legal and political consequences for companies that support anything seen as DEI.
On the other hand, some pointed out that a16z remains interested in startup accelerator programs. Earlier in the year, it launched Speedrun, a program promising cohort graduates up to $1 million in investment.
