The accelerator playbook just got torn up. Ali Partovi's Neo is launching a Residency program that invests $750,000 through an uncapped SAFE - a dramatic departure from the traditional accelerator model that could reshape how early-stage startups get funded. Unlike Y Combinator's standard 7% equity take, Neo's structure potentially gives founders significantly more control and upside, while college students get $40,000 grants with zero strings attached.
Neo, the accelerator founded by tech veteran Ali Partovi, is making a bold bet that the future of startup acceleration isn't about taking a standard slice of equity - it's about backing founders with capital that doesn't force immediate dilution decisions.
The new Residency program puts $750,000 into participating startups through an uncapped SAFE note, according to TechCrunch. That's a fundamentally different approach than the model popularized by Y Combinator, which typically invests $500,000 for 7% equity - a fixed percentage that founders give up on day one.
The math tells the story. With an uncapped SAFE, Neo's eventual ownership stake gets determined when the startup raises its next priced round. If a company raises a Series A at a $50 million valuation, that $750,000 converts at those terms - likely resulting in less than 2% dilution. Compare that to YC's locked-in 7%, and the founder economics look dramatically different.
But Neo isn't stopping at startup investments. The program includes $40,000 grants for college students - money that comes with zero obligations, no equity exchange, and no expectation of payback. It's a bet on raw talent before incorporation papers get filed or pitch decks get created.
Partovi, who previously co-founded Code.org and invested early in companies like Facebook and Dropbox, has been quietly building Neo as an alternative to traditional accelerators since its founding. The platform focuses on connecting young founders with experienced entrepreneurs and investors, emphasizing community and long-term relationships over the intense 3-month bootcamp model.
