Andreessen Horowitz Halts TxO Fund, Initiates Staff Reductions
Andreessen Horowitz (a16z), a prominent venture capital firm, has announced a pause in its Talent x Opportunity (TxO) initiative, a program dedicated to supporting founders from underserved communities. This decision has also led to staff layoffs within the firm.
Launched in 2020, the TxO program was designed to provide resources and funding to entrepreneurs lacking access to traditional venture capital networks. The initiative began with an initial commitment of $2.2 million, with co-founder Ben Horowitz and his wife, Felicia, pledging to match up to an additional $5 million. Over the years, TxO has supported more than 60 companies, including Brown Girl Magazine, Myles Comfort Foods, and Villie.
Despite its contributions, the program faced criticism for its structure. Unlike traditional investment funds, TxO operated as a donor-advised fund managed by the nonprofit Tides Foundation. This meant that contributions were considered charitable donations rather than standard limited partner investments.
In October 2025, participants received an email from Kofi Ampadu, the partner leading TxO, announcing the program’s pause. The email emphasized the program’s mission to support builders creating culture-shaping companies without access to typical Silicon Valley resources.
The decision to halt TxO reflects broader challenges in the venture capital landscape, particularly concerning initiatives aimed at underrepresented founders. For instance, in August 2024, Techstars ended its J.P. Morgan-backed AdvancingCities program, which had a similar focus on diverse founders. Additionally, several a16z-backed companies, such as Synapse and Tally, have faced operational difficulties, leading to layoffs and shutdowns.
The pause of the TxO program raises questions about the future of funding and support for underserved entrepreneurs. While the program provided invaluable resources to many, its cessation underscores the need for sustainable models to support diverse founders in the venture capital ecosystem.
