Revolutionizing Accelerators

Executive Summary

Neo Residency, led by Ali Partovi, introduces a low-dilution accelerator model for elite founders. The program provides $750,000 via an uncapped SAFE, ensuring that ownership stakes remain minimal for high-valuation startups. Mentorship is provided by industry leaders such as Fuzzy Khosrowshahi and Russell Kaplan. TechCrunch reports that this shift aims to prioritize founder equity over traditional fixed-percentage takes.

Ownership is the fuel of innovation.

I noticed a shift in the way power is distributed in San Francisco this week. Most accelerators demand a massive chunk of a company before the first product even launches. It is a steep price for a seat at the table. Ali Partovi wants to break this cycle. TechCrunch reports that his firm, Neo, is launching a new residency program.

It targets the most talented engineers and students. The goal is simple. Partovi wants to provide help without taking the house. He understands the struggle of the founder.

The math of traditional venture capital often feels like a trap. I think the new terms are a relief. Neo offers $750,000 using an uncapped SAFE. This contract delays the equity calculation.

If a company raises money at a $100 million valuation, Neo takes only 0.75 percent. Contrast this with the standard 7 percent or 10 percent elsewhere. The difference is staggering. It allows a builder to keep the fruits of their labor. Dignity returns to the cap table. And the incentives finally align with the creator instead of the financier.

Partovi has a history of spotting winners.

He backed Facebook in its infancy. He saw the potential in Cursor. He put money into Kalshi. Success follows his gaze. This reputation carries weight with investors who look for the next breakthrough. The residency lasts three months in the Jackson Square district. Founders gather in this corner of the city to build.

They also travel to the Oregon mountains. This bootcamp lasts two weeks. It is a period of focus. There are no distractions in the woods. Only the work remains.

Mentors provide the bridge between theory and reality. Fuzzy Khosrowshahi is one such guide. He created Google Sheets. He is also the CTO of Notion. He understands how to scale a tool for millions.

Russell Kaplan from Cognition brings his expertise to the group. These are not mere advisors. They are practitioners. I noticed that the residency skips the fluff. It focuses on the hard craft of engineering. But the real value is the community. Builders learn from the people who have already won the game.

The summer cohort will host up to fifteen startups.

These teams get the prestige of Neo without the usual burden of debt. I saw the enthusiasm in the eyes of young developers. They are no longer forced to choose between mentorship and their own shares. This is a win for the ecosystem. It forces other firms to rethink their greed. But competition is good for the valley.

The future belongs to the founders who keep their equity. This program ensures they do. The horizon looks bright for those who choose this path.

Important Addition:

Beyond the funding for established startups, Neo is also betting on talent at its earliest spark. They offer $40,000 no-strings-attached grants specifically for college students. Unlike traditional predatory deals, this isn’t a debt or a trade for equity; it is a “proof of belief” that allows the next generation of engineers to experiment without the immediate pressure of a traditional job hunt. This identifies Neo not just as a fund, but as a scouting network for the top 1% of technical talent before they even graduate.