Andreessen Horowitz is pausing the Talent x Opportunity (TxO) fund and program, based on 4 sources familiar with the matter, including greater than one of the program’s founders.
The company announced TxO in 2020 support founders who do not have access to traditional enterprise networks. Many TxO participants are women and minorities, who generally receive very small amounts of enterprise capital.
The fund’s announcement comes amid an outpouring of support that underrepresented founders received in 2020 following the murder of George Floyd. As TechCrunch previously reported, the fund launched with initial commitments of $2.2 million, with a16z co-founder Ben Horowitz and his wife Felicia raising an additional $5 million.
TxO provided the founders with access to technology networks, a 16-week training program and a $175,000 investment through a fund managed by the nonprofit Tides Foundation. The program went on to support over 60 corporations (comparable to media brand Brown Girl Magazine, food technology company Myles Comfort Foods and maternity technology company Villie).
TxO was met with criticism when it was founded because it is technically structured more like a nonprofit organization than a traditional investment fund. People who invest in the fund are considered donors, and the money contributed is treated as a charitable contribution reasonably than a traditional investment in limited partners.
Still, founders who participated in the program and spoke with TechCrunch said it provided them with invaluable support and opportunities they otherwise would not have had access to. Last yr, TxO expanded its operations by launching a grant program, donating $50,000 to three tech nonprofits this support was insufficient founders.
TxO has announced – for now – the final cohort of the program in starting of March 2025. Founders who participated in the program received an email on October 16 from Kofi Ampadu, a partner at a16z who led TxO, informing them that the program was being paused.
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“When we launched TxO, the mission was clear: to support talented, driven builders who are building culture-shaping companies but may not have access to typical Silicon Valley networks and resources,” Ampadu’s email reads, as seen by TechCrunch. “While this goal has not changed, we are pausing our existing program to improve how we deliver it.”
The remainder of the email read:
Over the past five years, we have experimented with a number of high-performing founder models, from virtual and in-person programming to curriculum design and funding structure. As we rethink what’s next, we’ll apply every thing we have learned and evolve how we support founders, integrating with a16z’s broader early-stage investing and company-building strategy.
TxO has supported over 60 corporations and almost 100 founders. Together, you have raised tens of tens of millions in complementary capital and reached customers no matter culture and lifestyle. Founders from earlier cohorts now advise newer ones, and 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 up thus far with what’s next. In the meantime, if you have any questions, please do not hesitate to contact us directly.
With respect,
Kofi
A16z confirmed to TechCrunch that the program has been shut down and that Ampadu has notified participants via email.
According to two sources, members of the TxO team, which consisted of at least three people, except Ampad, were also fired, and the end of October was their last week.
The fund’s application documents didn’t specifically call for founder diversity, except for “cultural authenticity,” and also emphasized classic startup investment criteria comparable to market size and ability to execute. But fund announcement already in 2020 it was clearly explained that it is “for entrepreneurs who don’t have access to the fast track in life but have great potential. Their products may not be technological or technological; they should come from underserved communities (all backgrounds welcome).”
Still, many in the startup world viewed TxO as an accelerator of diverse talent, and several individuals who spoke to TechCrunch indicated that its pause is occurring as leading tech corporations eliminate, reduce, transform, or completely withdraw from previous public commitments related to diversity, equity, and inclusion. The Trump administration has threatened legal and political consequences for corporations supporting anything that might be perceived as DEI.
Others, nonetheless, have noted that a16z is still interested in accelerator-type startup programs. Earlier this yr began Speedrunprogram that guarantees cohort graduates an investment of as much as $1 million.