Andreessen Horowitz (a16z) just announced a pause for its Talent x Opportunity (TxO) fund. This program was created to benefit tech founders of color that have been historically underrepresented. The decision comes as staff layoffs hit TxO, including at least three members of TxO’s team. This would be a dramatic departure for the initiative initially conceived to provide support for a wide variety of entrepreneurs from underrepresented backgrounds.
The TxO program kicked off with an outstanding $2.2 million in programmatic commitments to start. It provided founders with access to critical technical networks, as well as a rigorous 16-week Technical Training program. Each of the participants walked away with a $175,000 investment for their startup, made through their own donor-advised fund operated by the nonprofit Tides Foundation. During its five-year duration, TxO helped launch more than 60 companies. A few examples include Brown Girl Magazine, Myles Comfort Foods, and Villie. The program further supported almost 100 diverse founders, reflecting its dedication to leading change and equity in the tech ecosystem.
Kofi Ampadu, the partner at a16z overseeing the program, emailed participants on October 16. He told them that the TxO initiative is currently on pause. The deeply personal communication signaled a broader reevaluation of how the firm plans to support founders in the future.
“When we launched TxO, the mission was clear: support talented, determined builders who are creating culture-shaping companies but may not have access to typical Silicon Valley networks and resources,” – Kofi Ampadu
The decision to pause TxO comes after the implementation of a new grant program last year. This program awarded $50,000 grants to three technology-based nonprofits focused on helping underserved entrepreneurs. TxO is excited to announce that our new cohort program TxO Connect was launched this year! Through this new initiative, any graduating graduate can raise up to $1 million in investment via Speedrun.
In the past, TxO has piloted different models to figure out how they can best serve their founders. Kofi Ampadu shared that these experiences will inform efforts going forward.
“Over the past five years, we’ve experimented with different models for best serving founders — from virtual and in-person programming to curriculum design and funding structure. As we rethink what’s next, we’ll be applying everything we’ve learned and evolving how we support founders by integrating with a16z’s broader early-stage investing and company building strategy.” – Kofi Ampadu
In early March 2025, we plan to announce the Talent x Opportunity Spring 2025 cohort. This decision confirms our steadfast dedication to cultivating diverse talent in technology, despite the recent changes that have occurred. The fund had drawn an unprecedented $5 million matching investment from co-founder Ben Horowitz and his wife, Felicia.
