Against the backdrop of protests against racism and police brutality erupting across the country, Andreessen Horowitz has announced that it is launching a new nonprofit fund to invest in founders from underserved backgrounds.
Silicon Valley's venture capital industry has long been criticized for its approach to increasing diversity in both its investments and its workforce. Standard practices like scouting startups from a known network of elite institutions have made it difficult for some startup founders to get an audience with Silicon Valley's blue-chip firms.
In addition to seed capital provided by the firm, Andreessen Horowitz said that it hoped to provide founders with the blue-chip firm's vast network, and give them the chance to get further funding like "an accelerator for the unseen." Although SoftBank's fund is significantly larger than the Talent x Opportunity fund, Andreessen Horowitz also has other ongoing efforts to increase diversity within tech. The firm's, launched two years ago, sets out to increase diversity in tech by donating all its management fees and carried interest into non-profits dedicated to increasing diversity in technology.
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