Ali Partovi's Neo looks to upend the accelerator model with low-dilution terms | TechCrunch

TechCrunch

by Marina Temkin

February 20, 2026

AI-Generated Deep Dive Summary

Ali Partovi’s Neo has introduced a groundbreaking Residency program that challenges traditional accelerator models by offering low-dilution terms for startups. Unlike conventional accelerators that often require founders to hand over significant equity upfront, Neo’s program provides $750,000 in funding through an uncapped SAFE agreement, allowing startups to retain more ownership until their next funding round. This structure ensures that the dilution is tied directly to the company’s valuation at that future round, making it a highly favorable option for early-stage founders. The program also includes a unique track for college students, offering no-strings-attached grants of $40,000 to support academic-year projects or startups. Founders selected for Neo Residency will work out of Neo’s San Francisco office and participate in a rigorous bootcamp in Oregon’s mountains. They’ll gain access to mentorship from a network of seasoned operators, including Russell Kaplan and Fuzzy Khosrowshahi, who bring decades of experience to the table. Neo’s approach is designed to attract top talent by combining generous funding terms with elite mentorship and prestige. The program’s small cohort size—capped at 20 teams per year—ensures a highly selective and supportive environment. This model aims to empower future entrepreneurs without forcing them to give up significant equity early on, which Partovi believes will help identify and nurture the next wave of tech leaders. For tech enthusiasts, Neo’s Residency represents a significant shift in startup funding dynamics. By minimizing upfront dilution and offering unparalleled support, the program could democratize access to capital and mentorship for ambitious founders. This approach not only benefits startups but also strengthens the broader innovation ecosystem by encouraging more entrepreneurs to pursue bold ideas without excessive early risk.

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Originally published on TechCrunch on 2/20/2026