For the most coveted entrepreneurs, the renown of a premier accelerator is progressively evaluated against relinquishing a substantial equity portion in their venture.
Ali Partovi, a seasoned investor and chief executive of the capital enterprise Neo, seeks to provide the guidance and network typically found in the most exclusive accelerator initiatives—yet without compelling the most promising nascent technology innovators to yield 7% or even 10% of their enterprise right at its inception.
Partovi, acclaimed for his initial capital contributions to Facebook, Cursor, and Kalshi, has newly launched Neo Residency. This innovatively structured program integrates the firm’s established four-year accelerator with a specialized pathway for university students.
The stipulations presented by Neo Residency are so advantageous to entrepreneurs that they are “unparalleled by any other accelerator,” Partovi informed TechCrunch.
For the group of 12 to 15 new ventures participating in the initiative this summer, Neo plans to inject $750,000 through an uncapped SAFE — an agreement that grants an investor future ownership in return for immediate capital, with no upper limit on the appraisal utilized to determine that share. Diverging from the fixed-percentage agreements characteristic of other accelerators, Neo will not obtain its equity until the company’s subsequent official financing stage. Even then, the reduction in ownership is linked to the appraisal. Should a startup secure its next round at a $15 million valuation, Neo’s share will amount to 5%; however, if that valuation reaches $100 million, the firm’s holdings decrease to merely 0.75%.
“We assume the initial risk, making this profoundly beneficial for emerging companies,” Partovi stated.
By contrast, Y Combinator usually acquires a set 7 percent of a company for $125,000, with an additional $375,000 channeled through an uncapped MFN — or most-favored nation — SAFE. This provision guarantees initial funders secure conditions no less favorable than those provided to subsequent ones. Concurrently, Andreessen Horowitz’s Speedrun program commonly puts $500,000 in return for 10% of the startup via a SAFE instrument, plus an extra $500,000 should the subsequent round be secured within an 18-month timeframe under conditions mutually accepted by other funders.
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“We are presenting such an attractive proposition that it is suitable even for entrepreneurs who are entirely disregarding any other accelerator,” Partovi declared.
The decreased shareholding burden represents merely one aspect of Neo Residency’s allure.
The entrepreneurs will spend a quarter of a year operating at Neo’s premises in San Francisco’s Jackson Square district, engage in a two-week immersive workshop in the Oregon mountains, and receive guidance from approximately 30 seasoned professionals, including Russell Kaplan, head of Cognition, and Fuzzy Khosrowshahi, CTO of Notion (who is also the originator of Google Sheets and Partovi’s uncle).
Nevertheless, the initiative’s principal allure stems from its reputation: Seed and Series A investors typically hold high regard for entrepreneurs personally selected by Partovi.
“The one [accelerator] I currently favor that shows a strong indication of quality, and every founder I encountered there is remarkably astute, is Neo,” Wesley Chan, joint founder and leading associate of FPV Ventures, declared from the platform at 2025 TechCrunch Disrupt.
New ventures that have completed the initiative include Moment, a financial technology enterprise that has secured $56 million from funders such as Andreessen Horowitz, and Anterior, a healthcare AI startup supported by NEA and Sequoia.
Neo Residency will also choose five to eight students—whether solo or in small groups—who will be awarded a $40,000 unrestricted stipend to pause their studies for a term and focus on an undertaking. While there is no obligation to discontinue studies or launch an official enterprise right away, Partovi mentioned he anticipates the students will be inspired by the spirit of entrepreneurship and, when they ultimately establish a new venture, will seek capital from Neo.
Neo is maintaining the initiative’s limited size and exclusivity: it will limit its two yearly groups to 20 teams each, comprising a blend of operational new ventures and student-led initiatives.
Why is Neo providing such favorable conditions? “We possess greater assurance in our capability to draw in and identify forthcoming luminaries than ever before,” Partovi remarked.
His past performance indicates that assurance is indeed justified. He notably encountered Cursor joint founder Michael Truell during Truell’s time as an MIT undergraduate and subsequently provided one of the initial investments for the artificial intelligence software development company, presently worth nearly $30 billion.
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