For top founders, the allure of prestigious accelerators is often weighed against giving up significant ownership in their company.
Ali Partovi, CEO of venture firm Neo, aims to provide elite accelerator benefits without requiring substantial equity from emerging tech leaders.
Partovi, known for early investments in Facebook and Cursor, has launched Neo Residency, a program merging Neo’s four-year-old accelerator with a track for college students.
The founder-friendly terms of Neo Residency are unmatched, says Partovi.
Neo will invest $750,000 via an uncapped SAFE for each of the 12 to 15 startups entering the program, with equity tied to future valuations, making it a risk for Neo and favorable for startups.
In comparison, Y Combinator takes a fixed 7% for $125,000, while Andreessen Horowitz’s Speedrun program invests $500,000 for 10% equity.
“We’re offering such a favorable deal that it’s attractive even for those not considering accelerators,” Partovi states.
Neo Residency’s value goes beyond lower equity costs.
Founders will spend three months in San Francisco, attend a bootcamp in Oregon, and receive mentorship from experienced operators.
The program’s prestige is its main attraction, as Seed and Series A investors respect Partovi’s chosen founders.
“Neo has the high signal and smart founders,” said Wesley Chan from FPV Ventures.
Program alumni include fintech company Moment and healthcare AI startup Anterior.
Neo Residency will also grant five to eight students $40,000 each to work on projects during a semester off, with hopes they’ll later join the startup world and Neo.
Neo plans to keep the program exclusive, with two annual cohorts capped at 20 teams.
Neo’s confidence in attracting future stars is at an all-time high, backed by Partovi’s successful track record.