Ali Partovi introduces Neo Residency, a founder-friendly startup accelerator offering $750,000 uncapped SAFE investments and flexible equity terms to early-stage startups.
For many startup founders, getting into a top accelerator is still a major milestone. These programs offer mentorship, connections, and credibility. But they also come at a cost. Founders are often asked to give up 7% or even 10% of their company at a very early stage.
Ali Partovi believes that the trade-off no longer makes sense for the most promising founders. As CEO of venture firm Neo, he is launching a new program called Neo Residency. His goal is to offer the benefits of a top accelerator without demanding a large ownership stake upfront.
A Different Kind of Deal
Neo Residency will accept 12 to 15 startups in its first summer cohort. Each company will receive a $750,000 investment through an uncapped SAFE. A SAFE, or Simple Agreement for Future Equity, allows investors to provide money now in exchange for shares later, usually at the next funding round. The key difference is how Neo structures its ownership. Instead of taking a fixed percentage right away, Neo waits until the company raises its next formal round. At that point, the firm’s stake depends on the valuation.
For example, if a startup raises its next round at a $15 million valuation, Neo would receive about 5% of the company. If that valuation reaches $100 million, Neo’s ownership would drop to around 0.75%. Partovi says this structure puts more risk on Neo and gives founders a better deal. If the company does well and earns a high valuation, founders keep more of their equity.
How Neo Compares to Other Accelerators
Neo’s model stands in contrast to established programs. Y Combinator typically invests $125,000 for a fixed 7% stake in a company. It also provides an additional $375,000 through an uncapped SAFE with a most-favored-nation clause, which ensures early investors receive terms at least as good as later ones.
Andreessen Horowitz runs a program called Speedrun. That program usually invests $500,000 in exchange for 10% of the company through a SAFE. It may invest another $500,000 if the startup raises a new round within 18 months. Compared to these standard terms, Neo’s approach is designed to feel less restrictive. Partovi argues that the offer is strong enough to appeal even to founders who were not planning to join any accelerator.
More Than Just Money
The financial terms are only part of Neo Residency’s appeal. Founders in the program will spend three months working from Neo’s offices in San Francisco’s Jackson Square neighborhood. They will also attend a two-week bootcamp in the mountains of Oregon.
The program includes mentorship from about 30 experienced operators. Among them are Russell Kaplan, president of Cognition, and Fuzzy Khosrowshahi, chief technology officer of Notion. Khosrowshahi is also known for his work on Google Sheets and happens to be Partovi’s uncle. Beyond structured mentorship, the program emphasizes community. Founders will be surrounded by other high-performing peers, which can be just as valuable as funding.
Prestige and Signaling Power
One of Neo’s biggest strengths may be its reputation. Investors at the seed and Series A stages tend to pay close attention to founders selected by Partovi. At the 2025 TechCrunch Disrupt conference, Wesley Chan of FPV Ventures said that Neo currently sends a strong signal to investors. He described the founders he met through the program as exceptionally smart. That kind of endorsement matters. In early-stage investing, reputation often opens doors.
Several successful startups have already come through Neo’s accelerator. One example is Moment, a fintech company that has raised $56 million from investors, including Andreessen Horowitz. Another is Anterior, a healthcare AI startup backed by major venture firms such as NEA and Sequoia.
Opening the Door to Students
Neo Residency will also include a track for college students. Five to eight students, either solo or in small teams, will receive a $40,000 grant with no strings attached. They can use the money to take a semester off and work on a project.
There is no requirement to drop out of school or immediately start a company. Partovi hopes that exposure to entrepreneurship will encourage these students to build startups in the future. When they do, Neo aims to be their first call for funding.
The program will remain small by design. Neo plans to run two cohorts per year, with no more than 20 teams in each group. The mix will include active startups as well as student projects.
Confidence Backed by Experience
Why offer such founder-friendly terms? Partovi says Neo has strong confidence in its ability to identify future stars. His track record supports that claim. He made early investments in companies like Facebook and later backed fast-growing startups such as Cursor and Kalshi. In the case of Cursor, Partovi met co-founder Michael Truell when Truell was still a student at MIT.
Neo wrote one of the first checks into the AI coding startup, which is now valued at close to $30 billion. By keeping ownership flexible and focusing on a small, carefully selected group, Neo is betting that picking the right founders matters more than locking in a large percentage at the start.
A Challenge to the Old Model
Accelerators have long followed a simple formula: small initial investment in exchange for a fixed slice of equity. That model worked well when startups had fewer options. Today, top founders often have multiple paths to funding. Some can raise money directly from angels or venture firms without joining an accelerator at all.
Neo Residency reflects this shift. Instead of demanding early dilution, it aims to align incentives and reward startups that grow quickly. Whether this model spreads across the industry remains to be seen. But for founders wary of giving up too much ownership too soon, Neo’s approach may look like a welcome change.
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