In Silicon Valley, Ali Partovi is quietly reshaping the landscape of venture investing by focusing not on established teams or current trends, but on singularly talented individuals still in the earliest stages of their potential. Though traditionally under the radar, Partovi has gained influence gradually, beginning with the founding team of LinkExchange, acquired by Microsoft in 1998 for $265 million, then co-founding iLike, which sold to MySpace in 2009, and later co-launching the non-profit Code.org alongside his twin brother, Hadi. Notably, the siblings also made early investments in future giants like Facebook, Dropbox, and Airbnb.
Today, Partovi’s prominence is finally catching up to his stature as a key talent-spotter through his venture firm, Neo. Since its start eight years ago, Neo has promised to discover transformational founders before anyone else, employing unconventional methods to assess their latent potential—including tests more common for job applicants than prospective startup CEOs.
Neo made headlines when it became the first external backer of Bluesky, a decentralized social network that recently reached a reported valuation of $700 million. Similarly promising bets include Kalshi, an online prediction marketplace that gained considerable traction amidst the fervor of last year’s presidential elections.
“This year, for the first time, I can conclusively say that we are discovering the future superstars before anyone else,” Partovi remarked recently, highlighting Neo’s evolving role.
One key example of this approach is Michael Truell, currently CEO of Anysphere—creator of the AI-based coding tool Cursor. While a freshman at MIT interning at Google, Truell was first introduced to Partovi through mutual connections. During an informal meeting, Partovi administered a coding test that Truell breezed through in fifteen minutes. Such assessments have become a hallmark for Neo, enabling Partovi to quickly identify technically adept individuals who can push boundaries. Now, Anysphere, backed early by Neo, is reportedly seeking funding at an eye-catching $10 billion valuation.
Neo’s broader strategy resembles Y Combinator’s original formula—placing bets on exceptional individuals rather than proven teams or established industries. Neo regularly scouts college campuses nationwide for what Partovi calls “tomorrow’s changemakers,” offering chosen students a $20,000 no-equity grant through its annual Neo Scholars program. Each year, around thirty promising young people receive support to pursue ambitious projects during their gap semesters. More recently, in 2022 Neo added a traditional startup accelerator for early-stage ventures, providing structured funding and mentorship to about 20 selected companies per year.
Partovi explains his philosophy succinctly: “I try to coax [founders] toward taking a bit more risk, going outside their comfort zone, aiming higher than whatever they are aiming for right now.”
The approach demands patience. For years, Partovi personally toured universities nationwide, conducting intensive one-on-one interviews and technical evaluations, searching for key indicators powerfully predictive of entrepreneurial success. Visible results have begun to accumulate: among past scholars are founders behind Cognition, an advanced coding assistant valued at $4 billion; Pika Labs, maker of an AI-driven text-to-video generator now valued at around $700 million; and Chai Discovery, a foundation model startup that recently raised $30 million from OpenAI and Thrive Capital.
Partovi emphasizes multiple criteria in determining whom Neo supports: strong technical foundations—not merely to write software, but because rigorous computer science skills encourage sharper critical thinking; proven entrepreneurial drive; and finally, a challenger mindset willing to question established norms. Yet above all, he cites personal magnetism as critical, illustrated by one simple question: “If this individual launched something, would their smartest friends follow?”
This selective investment style has heightened Neo’s reputation and made acceptance into its programs fiercely competitive. Applications for scholar grants and accelerators have consistently doubled each year, yet rather than expand its selection size, Neo deliberately maintains its exclusivity.
Similarly restrained are Neo’s fund sizes. Its latest fund, closed earlier this month at $320 million, marks only a modest increase from the previous $235 million raise. Significantly, however, Partovi committed more of his own capital to the current fund than to the first three funds combined, signaling personal conviction. Neo’s investors also include well-known tech figures like Sheryl Sandberg, Bill Gates, and Reid Hoffman.
Though reluctant to publicly declare unrealized gains, Partovi quietly acknowledges substantial returns: Neo’s first fund is reportedly already between three and four times its invested value, with room to grow. The second fund has doubled notably—driven primarily by the success of Anysphere alone.
Asked how startups should navigate today’s cool fundraising environment, Partovi underscores foundational wisdom: create enduring value rather than focusing excessively on financial outcomes. “I tell people not to obsess about money, but obsess about serving humans. Build something wonderful, something that others deeply love. Money will follow as a result,” he advised.
