Sequoia India and South East Asia expand Check range for early stage surge program – Meczyki.Net

Sequoia India and Southeast Asia are expanding their check size limits for the surge program as the storied venture firm seeks to make its seed investments “relevant to a larger group of founders”.

The venture 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 vary between $300,000 to $3 million, it said.

The move comes as the most powerful and influential venture investor firm, through its surge program, realizes that some early-stage startups require more funding especially during current market conditions, while some firms There are those in the early stages – where they don’t have a product, for example – that could do with smaller checks, said Rajan Anandan, managing director of Sequoia India and Southeast Asia in an interview with Meczyki.Net.

Anandan dismissed the idea that the decision was a reaction to current market conditions, saying Sequoia was making changes several months ago, but added that “in this context, it would be even more helpful.”

As the size of its investments changes, the firm said it does not want to take more ownership in the young startup. The equity range will continue as a ceiling limit between 10 and 20% against its investments, while the floor range will have more flexibility, he added.

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

The firm, which has run seven such groups so far, said it has supported 112 startups through the Surge program, which have collectively raised more than $1.5 billion in a follow-on round. “When we partnered with them, more than 20% of Surge startups were pre-launched,” Sequoia said.