Andreessen Horowitz has reportedly paused its Talent x Opportunity (TxO) fund, a program launched in 2020 to support founders without access to traditional Silicon Valley networks.
A16z's TxO Fund Put on Pause After Five Years
The firm, also known as a16z, has suspended TxO operations and laid off several staff members, reported TechCrunch, citing sources familiar with the matter, including some founders in the program.
The TxO program was led by partner Kofi Ampadu and aimed to empower women and minority founders who have historically received limited venture capital funding.
In an email sent to participants on Oct. 16, Ampadu reportedly wrote, "While that purpose has not changed, we are pausing our existing program to refine how we deliver on it," the report noted.
He added that the firm will integrate lessons from the initiative into a16z's broader early-stage investment strategy.
A16z confirmed the program's suspension to the publication.
The firm did not immediately respond to Benzinga's request for comments.
Program Backed 60+ Startups and Nearly 100 Founders
Launched in the wake of 2020's racial equity movement, TxO initially raised $2.2 million in commitments, with a16z co-founder Ben Horowitz and his wife matching up to $5 million.
The program offered founders $175,000 in funding, mentorship and access to tech networks, backing over 60 startups across media, food tech and lifestyle sectors.
The pause comes as major corporations scale back DEI programs amid political pressure and shifting priorities.
A16z Pause Comes Amid Growing Corporate Pullback From DEI
Earlier this year, President Donald Trump directed federal agencies to eliminate DEI initiatives and called on private companies to halt what he described as unlawful DEI-based discrimination and favoritism.
Major corporations that have made moves on DEI include Meta Platforms Inc. (NASDAQ:META), Amazon.com Inc. (NASDAQ:AMZN), Walmart Inc. (NYSE:WMT) and Target Corp. (NYSE:TGT).
Taking it a step further, Alphabet Inc. (NASDAQ:GOOG), Google's parent company, has removed a statement from its SEC filings that outlined its commitment to diversity, equity and inclusion.
According to Benzinga's Edge Stock Rankings, GOOG ranks in the 89th percentile for Momentum, underscoring its strong long-term price trend. Click here to see how it stacks up against its peers.
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