Ali Partovi’s Neo launches low-dilution accelerator Neo Residency

Ali Partovi’s venture firm Neo has introduced Neo Residency, a new accelerator designed to offer mentorship and community without the heavy equity hit founders often face. For a cohort of 12 to 15 startups this summer, Neo will invest $750,000 via an uncapped SAFE and won’t take equity until the company’s next formal funding round; dilution is tied to valuation, so a $15 million round would translate to a 5% stake, while a $100 million valuation would yield just 0.75%.

Partovi framed the terms as founder-friendly: “We take the risk up front, so this is extremely favorable to startups.” He added that Neo is offering a deal “so great that it’s appropriate even for founders who are not even considering any other accelerator.” By contrast, Y Combinator typically takes a fixed 7% for $125,000 plus $375,000 on an uncapped MFN SAFE, and Andreessen Horowitz’s Speedrun program generally invests $500,000 for 10% via a SAFE with another $500,000 conditional on the next round.

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