"For the cohort of 12 to 15 startups entering the program this summer, Neo will invest $750,000 via an uncapped SAFE - a contract that gives an investor future equity in exchange for money now, with no ceiling on the valuation used to calculate that stake. Unlike the fixed-percentage deals typical of other accelerators, Neo won't receive its equity until the company's next formal funding round, and even then, the dilution is tied to valuation."
"In comparison, Y Combinator typically takes a fixed 7% of the company for $125,000, with another $375,000 invested on an uncapped MFN - or most-favored nation - SAFE, a clause that ensures early investors get terms at least as good as those given to later ones. Meanwhile, Andreessen Horowitz's Speedrun program typically invests $500,000 in exchange for 10% of the startup' via a SAFE note, and another $500,000 if the next round is"
Neo Residency will admit a cohort of 12 to 15 startups and invest $750,000 per company via an uncapped SAFE. The SAFE defers equity until the next priced funding round and ties dilution to that round's valuation, producing lower ownership percentages if valuations are high. The program pairs accelerator mentorship and community with a university track for current college students. The model contrasts with fixed-percentage accelerator deals such as a typical 7% for a $125,000 investment or programs that take a straight 10% for $500,000. The residency reduces immediate founder dilution while providing capital and support.
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