Neo Residency: Ali Partovi's Low-Dilution Accelerator Program for Top Tech Founders

Neo Residency blends four years of accelerator experience with a new track for current college students, offering founder-friendly terms that dramatically reduce early dilution.

Apr. 12, 2026 at 8:31am by

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A highly detailed, glowing 3D illustration of a futuristic, illuminated tech accelerator program interface, with sleek geometric hardware components emitting neon cyan and magenta lights, conceptually representing the innovative and technology-driven nature of the Neo Residency program.Neo Residency's founder-friendly accelerator program aims to redefine the traditional startup incubator model through generous equity terms and immersive mentorship.San Francisco Today

Ali Partovi, a veteran investor and founder of the venture firm Neo, aims to disrupt the traditional accelerator model by offering founder-friendly terms that dramatically reduce early dilution. Neo Residency provides an alternative path that emphasizes mentorship, community, and equity-friendly economics, with a deal structure that is unusually founder-friendly.

Why it matters

Traditional accelerators typically take a fixed percentage of equity for their investment, but Neo's model reorients the incentive structure toward maximizing founder upside rather than securing upfront equity. This raises provocative questions about whether accelerators should prioritize founder equity preservation over rapid capital.

The details

Neo Residency will invest $750,000 through an uncapped SAFE for a cohort of 12–15 startups, with no predetermined company valuation for converting that investment into equity. Instead, Neo's stake is contingent on the next funding round and scales with the round's valuation, so higher future valuations reduce Neo's ownership. The program also includes immersive experiences like three months in Neo's San Francisco office and a two-week bootcamp in the Oregon mountains, along with mentorship from about 30 seasoned operators.

  • Neo Residency will select two annual cohorts, each capped at 20 teams.
  • In addition to startups, Neo will select five to eight students (or small teams) to receive a $40,000 grant to take a semester off to pursue a project.

The players

Ali Partovi

A veteran investor and founder of the venture firm Neo, who aims to disrupt the traditional accelerator model.

Russell Kaplan

A seasoned operator who will provide mentorship to the Neo Residency program.

Fuzzy Khosrowshahi

The Notion CTO and creator of Google Sheets, who will also provide mentorship to the Neo Residency program.

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What they’re saying

“Partovi argues that the firm's confidence in its ability to identify and cultivate future superstars justifies generous terms.”

— Ali Partovi, Founder, Neo

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

Neo Residency invites a thoughtful reconsideration of what an accelerator should cost early-stage founders, raising questions about whether accelerators should prioritize founder equity preservation over rapid capital and how much value mentorship and network access truly add compared with the price of ownership.