A16z’s Diversity Bet: A Pause or a Pivot?

Hustler Words – Andreessen Horowitz (a16z) is temporarily halting its Talent x Opportunity (TxO) fund and program, according to multiple sources, including program participants. This initiative, launched in 2020, aimed to provide resources and support to founders from underrepresented backgrounds who typically lack access to traditional venture capital networks.

The TxO program offered a 16-week training program, access to tech networks, and a $175,000 investment through a donor-advised fund managed by the Tides Foundation. It has supported over 60 companies, including media brand Brown Girl Magazine, food tech Myles Comfort Foods, and maternity tech Villie.

While TxO provided invaluable support and opportunities to its participants, its structure as a nonprofit, rather than a traditional investment fund, drew some criticism. Investors were considered donors, and their contributions were treated as charitable donations.

In an email sent to program participants on October 16, Kofi Ampadu, the a16z partner leading TxO, announced the pause. He stated that the firm is refining its approach to supporting talented builders from underserved communities and will integrate TxO’s learnings into a16z’s broader early-stage investing strategy.

The email further highlighted TxO’s success in backing over 60 companies and nearly 100 founders, who have collectively raised tens of millions in follow-on capital. Ampadu expressed gratitude to the community and promised updates on future plans.

A16z confirmed the program’s pause and the staff team’s layoff, excluding Ampadu. While TxO’s application documents emphasized startup investment criteria, its launch announcement made clear its focus on entrepreneurs from underserved communities with great potential.

The hiatus of TxO coincides with a broader trend of tech companies reducing or retracting diversity, equity, and inclusion (DEI) commitments. However, a16z remains interested in accelerator-type programs, as demonstrated by its recent launch of Speedrun, which offers up to $1 million of investment to cohort graduates.

It remains to be seen whether the pause of TxO represents a temporary adjustment or a fundamental shift in a16z’s approach to supporting diversity in the startup ecosystem.