a16z pauses its famed TxO Fund for underserved founders, leading to staff layoffs and uncertainty about the program’s future.
Matilda
a16z Pauses TxO Fund, Lays Off Staff
a16z Pauses TxO Fund for Underserved Founders Andreessen Horowitz, known as a16z, has paused its famed Talent x Opportunity (TxO) Fund and laid off key staff, raising questions about its future support for underserved founders. The TxO Fund, launched in 2020, was created to help entrepreneurs without access to traditional venture networks—particularly women and minority founders. Many are now asking whether a16z’s decision signals a shift in how major VC firms approach diversity-focused funding in 2025. Image Credits:a16z Why Did a16z Pause Its TxO Fund? According to reports, the pause came quietly after a16z notified participants in October 2025 that the TxO program would halt operations. The initiative had previously offered $175,000 in funding, mentorship, and networking opportunities to early-stage founders through a donor-advised fund structure. Insiders say internal restructuring and changing investment priorities contributed to the decision, alongside broader economic slowdowns imp…
