SAN FRANCISCO, CA / ACCESS Newswire / February 3, 2026 / Every year, hundreds of billions of dollars flow through venture capital, shaping which ideas get built, which founders get funded, and which futures become real. As artificial intelligence accelerates the pace of company creation, the venture industry is being forced to confront a hard truth: the traditional funnels for identifying exceptional founders are breaking under the weight of scale.
A new type of model, in which Sam Altman is betting on is emerging to meet this moment and it looks nothing like a pitch competition. According to Altman:
"University degrees are IMO status and not substance at this point. I'd much rather see someone's exceptional work or how they perform at a task."
The Residency, a founder residency backed by leading operators and investors, is pioneering a new funnel for talent in the AI era: immersive, live-in residencies where founders build companies while living together under one roof.
Rather than optimizing for demos, decks, or short performance windows, The Residency is designed around a first-principles insight: the highest-fidelity signal in venture comes from proximity, time, and lived execution.
"The way we identify exceptional founders hasn't kept pace with how fast technology is moving," said Nick Linck, founder of The Residency. "In a world where anyone can spin up a product in weeks, surface-level signals break. We built The Residency to observe real performance over time, and how people build, collaborate, handle setbacks, and earn trust."
A New Funnel for an AI-Native World
The Residency is a cohort-based accelerator where founders don't just share calendars - they share lives. Residents live together, build together, and remove the friction of day-to-day logistics so they can reinvest their energy into creation.
The model has struck a nerve.
In the few months alone, The Residency received over 5,000 applications from founders across more than 40 countries, accepting just ~3% into each cohort. Applicants range from first-time builders to repeat founders, many coming from top AI labs, engineering organizations, and prior venture-backed startups.
Residents report reclaiming 20+ hours per week previously spent on cooking, cleaning, and rebuilding social infrastructure - time that gets redirected toward shipping product, recruiting early teams, and pressure-testing ideas in real time.
Why Investors Are Paying Attention
Venture capital has always evolved its structures to improve sourcing, selection, and enablement. From early network-driven investing, to the rise of accelerators like Y Combinator, each era introduced new ways to cut through noise.
Residencies represent the next step.
Accelerators generate signal through weekly updates and demo days, moments when founders are "on." Residencies generate continuous signal. Living together over months reveals traits that matter most in the long run: resilience, velocity, emotional intelligence, leadership, and peer respect.
In less than two years, companies emerging from residency-style programs have already reached breakout outcomes, including businesses that have scaled from zero to unicorn status. Repeat founders are increasingly opting into live-in environments for their next builds, and established venture firms are beginning to replicate residency-based models of their own.
Building the Future of Incubation
The Residency sits at the intersection of venture, talent, and culture - upstream of capital, but deeply influential over where capital ultimately flows. In others, it serves as the highest-signal environment investors can access.
Either way, the implication is the same: as noise increases, capital gravitates toward environments that produce clarity.
"We're not trying to replace venture capital," Linck added. "We're rebuilding the top of the funnel. The best founders want environments that maximize their odds of success. Investors want better signal. Residencies align both."
About The Residency
The Residency is a global, founder-first residency program designed to help exceptional builders create the next generation of category-defining companies. By combining immersive living, peer density, and deep operational support, The Residency is redefining how talent is discovered and companies are born in the AI era.
Contact:
519-495-4999
sunday@livetheresidency.com
SOURCE: The Residency
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/computers-technology-and-internet/this-new-ai-world-needs-a-new-funnel-for-talent-why-sam-altman-is-1132902
