Sequoia India and Southeast Asia is expanding the range of its check size for the Surge program as the renowned venture firm seeks to make its seed investments “more relevant to a larger group of founders,” it said Thursday.
The venture firm’s audit range for the three-year-old Surge program, which had previously invested $1-2 million in early-stage startups in the region, will now vary between $300,000 and $3 million , it was said.
The move comes as the company, the most powerful and influential venture investor, recognizes that some of the early-stage startups it supports through its Surge program need more cash, especially during current market conditions, while some companies are in such a young age Stage — where they don’t have product, for example — who could use smaller checks, said Rajan Anandan, a general manager at Sequoia India and Southeast Asia, in an interview with TechCrunch.
Anandan dismissed the idea that the decision was a reaction to current market conditions, saying Sequoia formulated the change a few months ago but said “In that context, it would be even more helpful.”
As the size of its investment changes, the company said it isn’t looking to take more ownership of the fledgling startups. The margin of equity against its investments will remain between 10% and 20% as a cap, while the floor will be more flexible, he said.
Sequoia launched the Surge program in 2019, which is similar to Y Combinator’s model. The company selects 15 to 20 startups about every six months after evaluating hundreds of applications and face-to-face meetings, and groups them into cohorts. The cohort spends 16 weeks learning the basics, finding their voice, identifying best practices and building relationships with their peers.
The company, which has conducted seven such cohorts to date, said it has supported 112 startups through the Surge program, which have collectively raised over $1.5 billion in subsequent rounds. “Over 20% of Surge startups were pre-launch when we worked with them,” Sequoia said.
Sequoia India and Southeast Asia broadens check range for early-stage Surge program – TechCrunch Source link Sequoia India and Southeast Asia broadens check range for early-stage Surge program – TechCrunch