Andreessen Horowitz is shutting down its Talent x Opportunity (TxO) fund for underserved founders and laying off its entire staff, according to four sources familiar with the decision. The move marks another major retreat from diversity programs as Silicon Valley's biggest names walk back DEI commitments amid political pressure from the incoming Trump administration.
Andreessen Horowitz just pulled the plug on one of Silicon Valley's most visible diversity initiatives. The firm is shutting down its Talent x Opportunity (TxO) fund and laying off its entire staff, marking the latest retreat from diversity programs as the tech industry braces for political backlash.
The decision affects more than 60 companies that went through the program since its 2020 launch, including media brand Brown Girl Magazine, food tech Myles Comfort Foods, and maternity tech company Villie. Three TxO staff members were let go at the end of October, with their last week coinciding with the program's official announcement.
Partners got the news on October 16 through an email from Kofi Ampadu, the a16z partner who led TxO. "While that purpose has not changed, we are pausing our existing program to refine how we deliver on it," Ampadu wrote to founders, according to the email obtained by TechCrunch.
The timing isn't coincidental. TxO's shutdown arrives as tech companies across the board eliminate DEI programs under pressure from the incoming Trump administration, which has threatened legal action against businesses supporting diversity initiatives. What once felt like moral imperative in 2020 - when TxO launched amid nationwide protests following George Floyd's murder - now feels like political liability.
a16z co-founder Ben Horowitz and his wife Felicia initially committed to matching up to $5 million in donations to the fund, which started with $2.2 million in commitments. The program provided founders with $175,000 investments through a donor-advised structure managed by the nonprofit Tides Foundation, plus access to Silicon Valley networks and a 16-week training program.
But TxO always faced structural challenges that may have contributed to its demise. Unlike traditional VC funds, it operated as a nonprofit where investors were considered donors making charitable contributions rather than limited partners expecting returns. This drew criticism from some quarters who questioned whether it represented genuine commitment to diversity or just optics.
