About txo

We are always looking to connect with talented founders and review applications on a rolling basis. If you want to apply, please submit your application here.

We evaluate founders based on:

Attractiveness of the product & market

• Size of the addressable market (could this be a global phenomenon?)
• Defensible business with compelling unit economics
• Cultural moat (the business reimagines its category)

Demonstrated progress

• Having an existing U.S.-based corporation that is already up and running
• Team (on board or in pipeline to hire)
• Customers, revenue, and other financial metrics
• Proven engagement: social media followers, etc.

Founding team

• Ambition
• Ability to execute
• Ability to improve
• Cultural authenticity (founding team has cultural secrets that incumbents do not)
• TxO’s ability to help
• Product/founder fit

TxO University is a hybrid program and founders are not required to move to the Bay Area to receive funding or access the network. Note that we are only working with US-based founders at this time.

We currently run two cohorts per year, in the Spring and Fall.

TxO is a standalone, separate fund from existing CFI funds. CFI provides resources to support TxO at its own expense and is responsible for the management and operational costs of TxO University. Otherwise, TxO has no relationship to other CFI funds or operations. All access to the firm’s expertise is on a voluntary basis only. In the future, it’s possible that TxO graduates may receive follow-on investments from CFI ’s venture fund, but this is not guaranteed and is not an active goal of the Initiative.

The TxO Fund is a Donor Advised Fund (DAF) at Tides Foundation, a 501(c)(3) public charity committed to advancing shared prosperity and social justice, including through investments, programs and grant making that advance equity and economic empowerment. As the donor advisor to the TxO Fund, CFI makes recommendations regarding investments and disbursements from the TxO Fund. Tides Foundation exercises discretion and control with respect to all amounts in the TxO Fund and uses its independent judgment to determine whether a proposed investment or distribution is aligned with Tides’ mission, the purpose of the Fund, and otherwise complies with applicable law.

This structure allows anyone (including non-accredited investors) to donate and join us in our mission, decentralizing who can and cannot participate in TxO. Contributions to the Fund will be treated as charitable contributions for tax purposes.

CFI does not profit from any of the returns: all returns generated by these holdings go directly back into the fund, with the hope that we can continue to support many future generations of founders. Contributors to the fund will not receive any return of capital or appreciation on the fund’s investments.

The TxO Fund’s standard investment terms provide that in exchange for $175,000, an entrepreneur agrees to give Tides Foundation (as sponsor of the TxO Fund) a SAFE note that converts into a 7 percent ownership stake in the company. CFI does not profit from any of the returns: all returns generated by these holdings go directly back into the fund, with the hope that we can continue to support many future generations of founders.

Neither CFI nor TxO Fund donors will receive any Fund returns: All returns generated by the TxO Fund will go directly back into the Fund to support future generations of founders.

The CFI team sources and admits companies to the TxO University program. Companies accepted into TxO University are referred to Tides, which reviews each recommendation to determine whether to make an investment from the TxO Fund.

TxO is continually building and maintaining a network of mentors, matching them with TxO founders at critical inflection points in the company’s growth. Mentors are seasoned entrepreneurs, operators, and investors with relevant experience building successful businesses and organizations. For each set of TxO founders, we will determine how we can be most helpful in growing their businesses and match them with mentors based on need and availability.

As a mentor, you have the opportunity to “pay it forward” by sharing your time, expertise, and perspective with the next generation of talented entrepreneurs. If you would like to volunteer to be a mentor and help TxO founders grow their companies, please email us at txo@a16z.com.

We engage with a variety of partners to support TxO founders, such as:

• Corporate partners who can offer products or services or bespoke experiences to support TxO founders’ business models (e.g. financial planning, accounting, legal, marketing)
• Early stage investors, accelerators, and incubators to identify potential TxO founders
• Fortune 500 companies to identify mentors and GTM opportunities for TxO founders

If you’re interested in partnering with TxO, please email us at txo@a16z.com.

We gratefully accept donations to the TxO Fund at Tides.org