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// Workers AI · dad joke modeWhat did Neo invest in? New ventures.

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From Wikipedia, the free encyclopedia
Neo
TypePrivate
IndustryVenture capital
Founded2017; 9 years ago (2017)
FounderAli Partovi
HeadquartersSan Francisco, California, U.S.
WebsiteOfficial website

Neo is an American venture capital firm and startup accelerator based in San Francisco, founded in 2017 by Ali Partovi.[1] In 2025, Forbes reported that Neo had over $1 billion in assets under management.[2] Neo was an early investor in Cursor, an AI coding tool whose maker, Anysphere, was acquired by SpaceX for $60 billion in 2026, one of the largest acquisitions of a venture-backed company on record.[3][4][5][6]

History

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Founding (2017)

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Neo was founded in 2017 by Ali Partovi, a technology entrepreneur known for early investments in Facebook, Airbnb, and Dropbox.[1] Partovi conceived the firm as a talent-scouting and investment network focused on identifying promising engineers and college students early in their careers.[7] A profile in Wired described the firm's model as one that combined a venture fund with a peer community of engineers, drawing comparisons to a "social club" in Silicon Valley.[8]

Funds

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In August 2018, Neo closed its first fund at $80 million, which TechCrunch described as a "communal" venture fund.[9] In 2021, Neo raised $150 million for its second fund, which Forbes headlined as serving the firm's "engineering talent network."[10][11] The Wall Street Journal later reported that Neo's second fund grew from $150 million to $1.2 billion in marked value, which it called rare for the 2021 vintage.[12] In 2023, Neo raised $235 million across two new funds, according to TechCrunch.[13] Neo closed its fourth fund at $320 million in 2025.[14][2]

Limited partners

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Neo's investor base has included prominent technology executives and institutional investors. According to TechCrunch, limited partners announced in connection with the 2023 fundraise included Sheryl Sandberg, Eric Schmidt, Henry Kravis, Joe Gebbia, and Max Levchin, as well as institutional investors Cendana Capital, Horsley Bridge, and Sequoia Capital.[13] Forbes reported that limited partners in Neo's fourth fund, raised in 2025, included Sandberg, Bill Gates, and Reid Hoffman.[2]

Programs

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Neo Accelerator

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Neo's accelerator program invests in early-stage technology startups. According to TechCrunch, companies accepted into the program receive a $750,000 uncapped SAFE, with equity stakes that scale with the startup's valuation at its next funding round, approximately 5% for startups valued at $15 million, declining to 0.75% for those valued at $100 million.[15] TechCrunch reported that the program typically accepts 12 to 15 startups per cohort, with two cohorts per year, and that approximately 30 mentor-operators participate in each cohort.[15] Each cohort meets in San Francisco's Jackson Square district for the main program, with an additional two-week retreat in the mountains of Oregon.[15] Neo partnered with OpenAI and Microsoft to launch an artificial intelligence startup track in 2023.[16] In 2026, the accelerator added a student track that provides $40,000 grants to between five and eight students in each cohort.[15]

Neo Scholars

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The Neo Scholars program selects approximately 30 students per year who show early technical promise, providing a $20,000 grant along with access to Neo's mentorship network, according to TechCrunch.[17] Wired described the program as a fellowship that combines financial support with access to a professional community of engineers and founders.[8] Cursor co-founder Michael Truell attended Neo's Scholars program before co-founding Cursor.[17][4]

Investments

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Neo was among the first investors in Cursor, the AI coding tool developed by Anysphere.[14][4] Fortune reported that Partovi became "one of the company's first investors" after Cursor co-founder Michael Truell attended Neo's Scholars program.[4] In June 2026, SpaceX agreed to acquire Anysphere for $60 billion in an all-stock deal.[5][18] The acquisition was completed in August 2026.[6] PitchBook ranked it as the second-largest acquisition of a venture-backed company on record, behind SpaceX's earlier merger with xAI.[19]

According to TechCrunch, Neo led the $8 million seed round for Bluesky in 2023.[20] Neo's seed investments included the prediction market Kalshi.[2][14] It also invested in Cognition AI.[14] Neo backed Wispr Flow, an AI voice-dictation startup that raised a $280 million Series B round in August 2026.[21][22] It has also invested in Etched, an AI chip startup valued at $21 billion the same month.[23]

Reception and competition

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According to TechCrunch, Neo's tiered equity model results in smaller stakes for higher-valued startups, in contrast to the fixed stakes taken by accelerators such as Y Combinator, which "typically takes a fixed 7%" equity stake.[15]

In 2026, Forbes ranked Partovi first among U.S.-based investors and second worldwide on its Midas Seed list of early-stage investors, and cited his early investment in Cursor.[24]

References

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  1. 1 2 Rafieyan, Darius (2024). "Ali Partovi learned to code in a war zone. Now, he's trying to build a new kind of venture fund". Business Insider. Archived from the original on 2025-09-18. Retrieved 2026-06-22.
  2. 1 2 3 4 Nieva, Richard (2025-04-16). "This Tech Incubator Is Harder To Get Into Than Harvard". Forbes. Archived from the original on 2026-05-18. Retrieved 2026-06-22.
  3. ↑ "SpaceX will buy Cursor for $60 billion". Axios. 2026-06-16. Archived from the original on 2026-08-17. Retrieved 2026-08-29.
  4. 1 2 3 4 Quiroz-Gutierrez, Marco (2026-06-16). "Who is Michael Truell? The 25-year-old CEO of Cursor and SpaceX's newest acquisition". Fortune. Archived from the original on 2026-06-19. Retrieved 2026-06-22.
  5. 1 2 O'Kane, Sean (2026-06-16). "SpaceX to acquire Cursor for $60B in stock, days after blockbuster IPO". TechCrunch. Archived from the original on 2026-06-20. Retrieved 2026-06-22.
  6. 1 2 Ha, Anthony (2026-08-15). "SpaceX officially closes its Cursor acquisition". TechCrunch. Archived from the original on 2026-08-21. Retrieved 2026-08-29.
  7. ↑ Carson, Biz (2019-01-18). "An Early Facebook Investor Is Creating A Scouting Network For Brilliant Engineers". Forbes. Archived from the original on 2025-10-01. Retrieved 2026-06-22.
  8. 1 2 Hempel, Jessi. "Silicon Valley's Latest Innovation Looks A Lot Like a Social Club". Wired. Archived from the original on 2025-07-25. Retrieved 2026-06-22.
  9. ↑ Loizos, Connie (2018-08-21). "Neo, a new 'communal' venture fund by Ali Partovi, has closed with $80 million". TechCrunch. Retrieved 2026-06-22.
  10. ↑ Cai, Kenrick (2021-11-19). "VC Firm Neo Raises $150 Million Second Fund For Its Engineering Talent Network". Forbes. Archived from the original on 2025-07-22. Retrieved 2026-06-22.
  11. ↑ "Venture Capital Firm Neo Raises $150 Million". Bloomberg. 2021-12-09. Retrieved 2026-06-22.
  12. ↑ "Neo Turned a $150 Million Fund Into $1.2 Billion, Rare for the 2021 Vintage". Wall Street Journal. Archived from the original on 2026-04-20. Retrieved 2026-06-22.
  13. 1 2 Loizos, Connie (2023-05-23). "VC firm Neo looks to up the ante with $235M across two new funds". TechCrunch. Archived from the original on 2026-03-19. Retrieved 2026-06-22.
  14. 1 2 3 4 Loizos, Connie (2025-04-27). "From coding tests to billion-dollar startups, Ali Partovi's eight-year experiment is paying off". TechCrunch. Archived from the original on 2026-06-02. Retrieved 2026-06-22.
  15. 1 2 3 4 5 Temkin, Marina (2026-02-19). "Ali Partovi's Neo looks to upend the accelerator model with low-dilution terms". TechCrunch. Archived from the original on 2026-06-02. Retrieved 2026-06-22.
  16. ↑ Bass, Dina (2023-03-21). "New AI Startup Accelerator Will Partner With OpenAI, Microsoft". Bloomberg. Archived from the original on 2023-09-10. Retrieved 2026-06-22.
  17. 1 2 Loizos, Connie (2025-04-27). "From coding tests to billion-dollar startups, Ali Partovi's eight-year experiment is paying off". TechCrunch. Archived from the original on 2026-06-02. Retrieved 2026-06-22.
  18. ↑ "SpaceX agrees to buy Cursor parent Anysphere for $60 billion". Quartz. 2026-06-16. Archived from the original on 2026-06-18. Retrieved 2026-06-22.
  19. ↑ Robbins, Jacob (2026-08-14). "2 charts: SpaceX closes $60B acquisition of Cursor". PitchBook News. Archived from the original on 2026-08-24. Retrieved 2026-08-29.
  20. ↑ Perez, Sarah (2023-07-05). "Bluesky announces its $8M seed round and first paid service, custom domains". TechCrunch. Archived from the original on 2026-05-17. Retrieved 2026-06-22.
  21. ↑ Mehta, Ivan (2026-08-17). "Wispr raises $280M at $2B valuation as it looks beyond dictation". TechCrunch. Archived from the original on 2026-08-18. Retrieved 2026-08-29.
  22. ↑ "Ali Partovi". Forbes. Archived from the original on 2026-08-30. Retrieved 2026-08-29.
  23. ↑ Bort, Julie (2026-08-18). "Etched's valuation doubles to $21B in a month". TechCrunch. Archived from the original on 2026-08-24. Retrieved 2026-08-29.
  24. ↑ "Midas Seed List 2026". Forbes. 2026-05-27. Archived from the original on 2026-06-22. Retrieved 2026-08-29.
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