Andreessen Horowitz Pauses TxO Fund Supporting Underserved Founders Amid Industrywide DEI Pullback

Andreessen Horowitz (a16z) has paused its Talent x Opportunity (TxO) fund and program, which was launched in 2020 to support underserved founders, particularly women and minority entrepreneurs who historically face barriers to venture capital funding. The TxO initiative provided $175,000 in funding, mentorship, and a 16-week curriculum, backing over 60 startups across various sectors via a donor-advised fund. The program's pause includes laying off several staff members and was communicated to participants by partner Kofi Ampadu, who stated that a16z plans to integrate lessons learned into its broader early-stage investment strategy. This move comes amid a wider industry pullback from diversity, equity, and inclusion (DEI) initiatives, influenced in part by political pressure, including directives from President Donald Trump to eliminate DEI programs from federal agencies and encourage private sector compliance. Although some founders praised TxO for providing much-needed opportunities, critics question the sustainability of such social impact investments as venture capital firms face economic challenges and shifting priorities. The future of TxO remains uncertain as a16z reassesses how to support underrepresented founders within its core investment framework.