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 impacting venture capital allocations.
How Did TxO Impact Underserved Founders?
Since its 2020 debut, the TxO Fund supported over 60 startups, including Brown Girl Magazine, Myles Comfort Foods, and maternity tech company Villie. The program provided essential exposure and resources to founders historically excluded from venture capital pipelines. Participants credit TxO with opening doors to investors and tech leaders who might otherwise have overlooked them. However, its nonprofit model and limited scalability have long been points of debate among venture professionals.
What’s Next for a16z and the Future of TxO?
While a16z has not confirmed whether TxO will return, many founders fear this pause could become permanent. The fund’s lead partner, Kofi Ampadu, reportedly informed members of the final cohort about the suspension earlier in October. With layoffs and program halts across the industry, questions loom over how major firms like a16z will continue fostering inclusivity in entrepreneurship—especially amid evolving priorities in AI, crypto, and infrastructure investing.
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