Sequoia India and Southeast Asia is expanding the check size range for the Surge program as the storied VC firm tries to make its seed investments more “relevant to a wider range of founders,” it said Thursday.
The VC firm’s check range for the three-year Surge program, which previously invested $1 million to $2 million in early-stage startups in the region, will now range from $300,000 to $3 million, the release said.
The move comes as the firm, the world’s most powerful and influential venture capitalist, realized that some of the early-stage startups it supports through its Surge program needed more money, especially in current market conditions while some firms are in this nascent stage. for example, where they don’t have a product — who could get by with smaller checks, Rajan Anandan, managing director of Sequoia India and South East Asia, told TechCrunch in an interview.
Anandan dismissed the idea that the decision is a response to current market conditions, saying that Sequoia had formulated the change months ago, but said “it would be even more useful in this context.”
As the size of its investment changes, the firm has said it has no intention of acquiring more rights to young startups. According to him, the range of equity in relation to his investments will continue to be 10 to 20% as the upper limit, while the lower range will be more flexible.
Sequoia launched the Surge program, similar to the Y Combinator, in 2019. The firm selects 15 to 20 startups roughly every six months after evaluating hundreds of applications and face-to-face meetings and groups them into cohorts. The group spends 16 weeks learning the basics of finding your own voice, best practices, and building relationships with peers.
The firm, which has run seven such cohorts to date, said it has backed 112 startups through the Surge program, which have collectively raised more than $1.5 billion in subsequent rounds. “More than 20% of Surge startups were in pre-launch when we partnered with them,” Sequoyah said.
Credit: techcrunch.com /