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

Andreessen Horowitz is discontinuing its Talent x Opportunity (TxO). Funds and programsFour sources familiar with the matter said, including multiple founders of the show.

The company announced TxO In 2020 to support Founders who do not have access to traditional enterprise networks. Many of TxO’s participants were women and minorities who, overall, receive very few venture capital dollars.

The funding announcement comes during a wave of that support Obtained underrepresented founders In 2020 after the killing of George Floyd. The fund launched with $2.2 million in initial pledges, TechCrunch previously reported, with a16z co-founder Ben Horowitz and his wife, Felicia, matching up to an additional $5 million.

TxO provided the founders with access to the tech network, a 16-week-long training program and a $175,000 investment through a donor-advised fund managed by the nonprofit Tides Foundation. The program supports more than 60 companies (such as media brands Brown Girl Magazine, food tech Miles Comfort Foods and maternity tech Willy).

TxO Got some criticism When it launches it’s because it’s technically structured more as a non-profit rather than a traditional investment fund. Those who invest in the fund are considered donors and the money given is considered a charitable donation rather than a traditional limited partner investment.

Still, founders who participated in the program and spoke to TechCrunch said it provided them with invaluable support and opportunities they wouldn’t have had access to otherwise. Last year, TxO expanded to launch a grant program, awarding $50,000 to three technology nonprofits. That support is underserved the founder

TxO announced — so far — the last batch of the program Early March 2025. Founders participating in the program received an email on October 16 from Kofi Ampadu, the partner at A16z who led TxO, announcing that the program would cease.

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

Read the rest of the email:

Over the past five years, we’ve experimented with different models to best serve founders — from virtual and in-person programming to curriculum design and funding structures. As we rethink what’s next, we’ll apply what we’ve learned and evolve how we support founders by integrating with a16z’s broader early-stage investment and company-building strategy.

TxO has supported more than 60 companies and nearly 100 founders. You’ve collectively raised millions in follow-on capital and reached customers across cultures and lifestyles. Founders of previous groups now mentor new ones, and that peer support has strengthened the entire community.

Thank you for being at the center of this community. Evidence of your progress Stay tuned for what comes next. In the meantime, if you have any questions, please don’t hesitate to get in touch directly.

greetings,

Coffee

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

Members of the TxO staff team, of whom there were at least three, except for Ampadu, were also let go, with the end of October being their last week, according to two sources.

The fund’s application documents did not specifically call for founder diversity other than “cultural authenticity” and also emphasized classic startup investment criteria such as market size and ability to execute. but Declaration of Funds In 2020 it clarified that “entrepreneurs who do not have access to the fast track in life but have great potential. Their products can be non-technological or technological; they must be from underserved communities (all backgrounds welcome).”

Still, many in the startup world see TxO as an accelerator for diverse talent, and several people who spoke to TechCrunch noted that its break comes as a top name in tech. Remove, cut, re-frame, or move back entirely Previous public commitments related to diversity, equity and inclusion. The Trump administration has threatened legal and political repercussions for businesses that support 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 by SpeedrunA program that promises combined grads up to $1 million in investment.