In Silicon Valley, where prominent figures frequently capture the spotlight, Ali Partovi has maintained significant influence despite lower name recognition. Born in Iran and a graduate of Harvard, Partovi’s early career was distinguished. He joined the founding team of LinkExchange, sold to Microsoft in 1998 for $265 million, co-founded iLike, sold to MySpace for approximately $20 million in 2009, and launched the educational nonprofit Code.org with his twin brother, Hadi. They were also early investors in major tech companies such as Facebook, Airbnb, and Dropbox.
Within industry circles, the Partovi brothers’ involvement in a startup is often seen as a positive signal. Ali Partovi’s broader recognition beyond the tech sector is now increasing, largely due to his venture firm Neo. Established eight years ago, Neo aims to revolutionize talent discovery, with a growing record of success.
Neo made significant investments early, being the first institution outside Twitter to invest in the decentralized social network Bluesky, valued at $700 million in a January funding round, and Kalshi, an online prediction market that gained popularity during the U.S. presidential election.
“This year, for the first time, I can conclusively say that we are discovering future superstars before anyone else,” stated Partovi, known for his gracious yet determined demeanor.
Neo’s connection with Michael Truell is illustrative of its approach. In 2017, Truell, then an MIT freshman, met Partovi during an internship at Google. During their meeting, Partovi assessed Truell with a coding test, which he completed swiftly. This practice highlights Neo’s approach of using technical evaluations for deeper engagement.
This encounter marked the beginning of a potentially lucrative relationship. Supported initially by Partovi, Truell co-founded Anysphere, which developed the AI-powered coding editor Cursor, now approaching a $10 billion valuation, potentially becoming one of Neo’s most successful investments.
Neo’s innovative approach in venture capital emphasizes identifying exceptional individuals rather than following established teams or market trends. Partovi and his partners at Neo, Suzanne Xie and Emily Cohen, focus on mentoring talented individuals, often before they establish companies.
The “Neo Scholars” program offers a $20,000 grant for students to take a gap semester, with 30 selected annually, requiring no equity. In 2022, Partovi also initiated a more traditional accelerator program, offering funding and guidance to 20 startups each year.
Partovi encourages taking calculated risks and pursuing ambitious goals. Since Neo’s inception, Partovi has personally traveled to identify promising students through interviews and coding tests.
The firm has seen significant success. Neo scholars have founded companies like Cognition, valued at $4 billion, and Pika Labs, valued at $700 million. Chai Discovery, another Neo-backed company, raised $30 million for its molecular prediction model.
“Last year, every one of OpenAI’s new grad hires was a Neo scholar,” Partovi proudly stated. He evaluates potential superstars based on technical skills, entrepreneurial spirit, and willingness to challenge norms. Notably, he seeks individuals with magnetism, essential for attracting talented collaborators.
As Neo’s reputation grows, so does the competition to join its programs. Applications double annually, though Neo remains selective rather than expanding indiscriminately.
Neo’s fund size reflects its philosophy. Despite being able to raise larger amounts, Neo secured $320 million in new capital recently, only slightly more than the $235 million it collected in 2023. Partovi increased his personal stake significantly, investing more than in all previous Neo funds combined. Noteworthy backers include Sheryl Sandberg, Bill Gates, and Reid Hoffman.
While cautious about discussing unrealized returns, Neo’s early funds are reported to perform well, with the first fund valued at three to four times its original size, with potential for further growth. The second fund more than doubled from the Anysphere investment alone.
Amidst a challenging exit market, Partovi advises founders to focus on creating lasting value. He encourages them to prioritize serving people over simply making money, emphasizing that financial success is a result of creating products that people love.
