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Sequoia India and Southeast Asia expand early-stage Surge program check lineup

Sequoia India and Southeast Asia expand early-stage Surge program check lineup

Admin | Post Thursday, 23 June 2022 - 08:36 AM | 38

Sequoia India and Southeast Asia is expanding the range of its checks for the Surge program as the famed venture capital firm attempts to make its seed investments more ?relevant to more founders?, it said Thursday .

The venture capital firm?s check range for the three-year-old Surge program, which previously invested $1 million to $2 million in early-stage startups in the region, will now range between $300,000 and $3 million. dollars, he said.

The move comes as the company, the strongest and most influential venture capitalist, realizes that some of the early-stage startups it backs through its Surge program need more money, in particular. especially in the current market conditions, when some companies are at a nascent stage ? where they don?t have a product, for example ? that could write smaller checks, said Rajan Anandan, managing director of Sequoia India and Southeast Asia, in an interview with TechCrunch.

Anandan dismissed the idea that the move was a response to current market conditions, saying Sequoia formulated the change months ago, but said ?in this context, it would be even more helpful.?

As the size of its investment changes, the company said it isn?t looking to take ownership of young startups more. The range of equity against its investments will continue between 10 and 20% as a ceiling limit, while there will be more flexibility in the floor range, he said.

Sequoia launched the Surge program, which is similar to Y Combinator?s model, in 2019. The company selects 15 to 20 startups roughly every six months after evaluating hundreds of applications and in-person meetings, and groups them into cohorts. The cohort spends 16 weeks learning the basics of finding their voice, best practices, and building relationships with their peers.

The company, which has led seven such cohorts to date, said it has backed 112 startups through the Surge program that have collectively raised more than $1.5 billion in follow-on rounds. ?Over 20% of Surge startups were in pre-launch when we partnered with them,? Sequoia said.

The size of the cohort, however, does not change significantly. ?We like the number 15-20. The size of our cohorts will remain roughly the same. We have 30 members for Surge that range from people who help businesses in technology, marketing, and finance. One of the things we?ve learned is that keeping the cohort at its current size allows us to go very far with each of our businesses,? he said.

Sequoia is also removing a fund dedicated to the Surge program. Previously, it twice raised $195 million for the seed fund, but now it will draw capital directly from the larger mothership, Anandan said. ?It?s fair to assume we?ll be investing more through Surge than ever before,? he said.