In Silicon Valley, where familiar names often dominate the spotlight, Ali Partovi has long influenced the tech world behind the scenes. The Iranian-born Harvard graduate built a stellar career early, joining the founding team at LinkExchange (sold to Microsoft for $265 million), co-founding iLike (sold to MySpace for $20 million), and launching the nonprofit Code.org with his twin brother, Hadi. Together, they made early bets on tech giants like Facebook, Airbnb, and Dropbox.
While insiders have recognized the Partovi brothers as strong startup signals for years, Ali’s name is now gaining broader recognition thanks to his venture firm Neo. Founded eight years ago, Neo aims to revolutionize talent discovery — and it’s starting to show impressive results.
Neo was the first institutional investor in Bluesky, the decentralized social network valued at $700 million, and in Kalshi, an online prediction market that surged during the U.S. presidential election.
“This year, for the first time, I can conclusively say that we are discovering the future superstars before anyone else,” Partovi said in a recent interview.
Discovering Talent Before the World Notices
Partovi’s unique approach shines through stories like his connection with Michael Truell. In 2017, Truell, then a freshman at MIT interning at Google, met Partovi. After a quick coding test — a common practice for Partovi — a lasting relationship formed. Years later, with Partovi’s early backing, Truell co-founded Anysphere, the company behind Cursor, an AI-powered coding editor now flirting with a $10 billion valuation.
Neo’s strategy echoes Y Combinator’s early days but shifts the focus from themes to people. Partovi, alongside partners Suzanne Xie and Emily Cohen, identifies exceptional college students through a “Neo Scholars” program, awarding 30 winners each year with a $20,000 grant to take a gap semester — no equity required.
In 2022, Neo added an accelerator program for early-stage startups, selecting 20 companies annually to receive funding and mentorship.
“I try to coax them towards taking more risks, aiming higher than they are right now,” Partovi explained.
The firm’s patience is paying off. Neo scholars have launched companies like Cognition (valued at $4 billion), Pika Labs (valued at $700 million), and Chai Discovery, which raised $30 million from OpenAI and Thrive Capital.
“Last year, every one of OpenAI’s new grad hires was a Neo scholar,” Partovi proudly shared.
The Qualities That Define Tomorrow’s Founders
When evaluating talent, Partovi focuses on three main traits: strong technical skills, entrepreneurial spirit, and a willingness to challenge norms. He also prizes “magnetism” — the ability to attract smart peers to future ventures.
Competition to join Neo is rising fast, with applications doubling each year. Yet Neo refuses to scale up just for size’s sake, keeping programs small and selective.
That discipline extends to its fund size. Earlier this month, Neo raised $320 million, only slightly more than the $235 million raised last year. Partovi personally increased his investment in the fund, exceeding his total contributions to all prior Neo funds combined. Early supporters like Sheryl Sandberg, Bill Gates, and Reid Hoffman remain among its investors.
While Partovi stays cautious about discussing returns, he shared that Neo’s first fund is already worth three to four times its original value, with more upside potential. The second fund has more than doubled thanks to the Anysphere investment alone.
In a tough exit environment, Partovi encourages founders to stay mission-focused: “Build a product so wonderful that people love it. Money is the result, not the goal.”
