Neo (venture capital firm)
American venture capital firm and startup accelerator
From Wikipedia, the free encyclopedia
Neo is an American venture capital firm and startup accelerator based in San Francisco, founded in 2017 by Ali Partovi.[1] As of 2025, Forbes reported that Neo had over $1 billion in assets under management.[2] Neo was among the first investors in Cursor, the AI coding tool whose parent company Anysphere agreed to be acquired by SpaceX for $60 billion in a deal announced in June 2026 and expected to close in the third quarter of 2026.[3][4]
| Type | Private |
|---|---|
| Industry | Venture capital |
| Founded | 2017 |
| Founder | Ali Partovi |
| Headquarters | San Francisco, California, U.S. |
| Website | Official website |
History
Founding (2017)
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.[5] 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.[6]
Funds
In August 2018, Neo closed its first fund at $80 million, which TechCrunch described as a "communal" venture fund.[7] In 2021, Neo raised $150 million for its second fund, which Forbes headlined as serving the firm's "engineering talent network."[8][9] 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.[10] In 2023, Neo raised $235 million across two new funds, according to TechCrunch.[11] Neo closed its fourth fund at $320 million in 2025.[12][2]
Limited partners
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.[11] Forbes reported that limited partners in Neo's fourth fund, raised in 2025, included Sandberg, Bill Gates, and Reid Hoffman.[2]
Programs
Neo Accelerator
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.[13] 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.[13] 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.[13] Neo partnered with OpenAI and Microsoft to launch an artificial intelligence startup track in 2023.[14]
Neo Scholars
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.[15] Wired described the program as a fellowship that combines financial support with access to a professional community of engineers and founders.[6] Cursor co-founder Michael Truell attended Neo's Scholars program before co-founding Cursor.[15][3]
Investments
Neo was among the first investors in Cursor, the AI coding tool developed by Anysphere.[12][3] Fortune reported that Partovi became "one of the company's first investors" after Cursor co-founder Michael Truell attended Neo's Scholar program.[3] In June 2026, SpaceX agreed to acquire Anysphere for $60 billion in an all-stock deal expected to close in the third quarter of 2026.[4][16]
According to TechCrunch, Neo led the $8 million seed round for Bluesky in 2023.[17] Neo also invested in Kalshi and Cognition AI.[12]
Reception and competition
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.[13]