a16z is pausing popular TxO fund for underserved founders, laying off staff

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

The company announced Dress up In 2020 To support Founders who don’t have access to traditional venture networks. Many TxO participants were women and minorities who generally received very small amounts of venture capital dollars.

The announcement of the fund came during the wave of support it witnessed Founders are underrepresented In 2020 after the killing of George Floyd. The fund launched with an initial commitment of $2.2 million, TechCrunch previously reported, with a16z co-founder Ben Horowitz and his wife, Felicia, up to 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 donor-advised fund managed by the nonprofit Tides Foundation. The program has gone on to support more than 60 companies (such as media brand Brown Girl Magazine, food technology company Myles Comfort Foods, and maternity technology company Villie).

Dress up It received some criticism When it launched because it was technically structured as a non-profit fund and not a traditional mutual fund. Investors in the fund are considered donors, and the funds provided are considered charitable donations, not traditional limited partner investments.

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

TxO has announced the final batch of the program – as of now – at Early March 2025. Founders who participated in the program received an email on October 16 from Kofi Ampadu, the partner at a16z who led TxO, announcing that the program would be paused.

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

Read the rest of the email:

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

TxO has backed over 60 companies and nearly 100 founders. Collectively, we have raised tens of millions in follow-on capital and reached customers across culture and lifestyle. Founders from earlier groups now advise newer groups, and this peer support has strengthened the entire community.

Thank you for being in the middle of this community. Your progress is evidence of what is maybe. Stay tuned for what comes next. In the meantime, if you have any questions, please feel free to contact us directly.

Best regards,

coffee

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

Members of TxO’s staff, which included at least three people, excluding Ampadu, were also let go, according to two sources, as the end of October was their last week.

The fund’s application documents did not specifically call for diversity of founders, except in terms of “cultural authenticity,” and also emphasized classic startup investment criteria such as market size and ability to execute. but Fund announcement Back in 2020, she explained that it was for “entrepreneurs who haven’t been able to get on 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).”

However, many in the startup world view TxO as an accelerator for diverse talent, and several people who spoke to TechCrunch pointed to its discontinuation as prominent names in tech. Remove, cut, rework or return entirely Previous public commitments related to diversity, equity, and inclusion. The Trump administration has threatened legal and political consequences for companies that support anything that could be considered DEI.

However, others have pointed out that a16z is still interested in accelerator-type startup programs. Earlier this year, that Speedrun launcheda program that promises graduates of the cohort up to $1 million in investment.