In the competitive landscape of Silicon Valley, Ali Partovi has emerged as a significant yet understated figure. An Iranian-born graduate of Harvard, Partovi has been instrumental behind the scenes, co-founding successful ventures like LinkExchange and iLike, as well as launching the educational organization Code.org with his twin brother, Hadi. Their investment acumen has also extended to early stakes in tech giants such as Facebook and Airbnb.

From the Shadows to the Spotlight

Though industry experts have acknowledged the Partovi brothers’ impact for years, Ali’s recognition has grown recently, particularly through his venture capital firm, Neo. Founded eight years ago, Neo aims to transform the way that exceptional talent is identified and nurtured, showcasing proof through innovative investments.

Pioneering Investments: A Glance at Neo’s Portfolio

Neo’s strategy includes strategic investments in pioneering companies. Notably, it was the first institution outside of Twitter to invest in Bluesky, a decentralized social platform valued at $700 million in its latest funding round. Additionally, Neo has invested in Kalshi, an online prediction market that gained traction during the U.S. presidential election cycle.

Cultivating Future Innovators

Partovi emphasizes the importance of mentorship in venture capital. An instance of this occurred in 2017 when Michael Truell, then a student at MIT, met Partovi during an internship at Google. Partovi’s unique approach involved administering a coding test that Truell completed swiftly, leading to a fruitful collaboration that resulted in the founding of Anysphere, an AI coding editor now nearing a $10 billion valuation.

Revolutionizing Venture Capital

Similar to Y Combinator, Neo’s model challenges traditional venture capital approaches. Instead of chasing specific industry themes, Partovi concentrates on identifying extraordinary individuals, often still in academia, and providing them with targeted mentorship. His ‘Neo Scholars’ program offers a $20,000 grant for gap semesters, with no equity required, aiming to foster innovation without constraints.

Programs Supporting Aspiring Entrepreneurs

• Neo Scholars Program: Provides funding for talented college students to pursue innovative projects.
• Accelerator Program: Supports 20 early-stage startups annually with funding and guidance.

Evaluating Talent: Partovi’s Framework

When assessing potential candidates, Partovi focuses on four essential qualities:

1. Technical Ability: A solid understanding of computer science enhances problem-solving skills.
2. Entrepreneurial Inclination: Past experiences signal a willingness to take risks and pursue innovative solutions.
3. Challenging the Status Quo: Founders must exhibit the courage to question established norms.
4. Magnetism: Partovi assesses the likelihood that an individual can attract like-minded, talented peers to join their ventures.

The Success of Neo’s Investments

Neo’s reputation has led to increased competition for its programs, with annual applications doubling. In a bid to uphold selective standards, Neo has opted not to expand rapidly, even while closing on $320 million in new capital. Partovi’s personal investment in this latest fund reflects his commitment to its vision, exceeding his contributions to all previous funds combined.

Advice for Founders

Amid current market challenges, Partovi encourages founders to concentrate on creating lasting value rather than getting distracted by short-term gains. “I [tell] people not to obsess about making money and obsess more about serving other humans,” he stated. “Build a product that’s so wonderful that other people just love it. Money is the result, not the goal.”

Image Caption: Ali Partovi with partners Suzanne Xie and Emily Cohen at Neo.