Sequoia increases seed round ticket size for its Surge programme to $3M

Sequoia increases seed round ticket size for its Surge programme to $3M
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By Aishwarya Anand  Jun 23, 2022 4:03 PM IST (Updated)

The increase in the ticket size will apply to its eight cohorts that will be launched next year.

Sequoia India and Southeast Asia is broadening the range of its check size for 'Surge', its accelerator and incubation programme. The venture capital firm’s check size for Surge will now go up to USD 3 million, from the previous USD 1-2 million investments in early-stage startups in the region.

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Increasing the ticket size allows the early-stage founders the runway and time they need to find product-market fit and build a strong team before raising a Series A, Sequoia said in a blog post.
“This is critical in any market cycle, and even more so at a time when investors are being more cautious and follow-on rounds may take longer to close,” the statement said.
The increase in the ticket size will apply to its eight cohorts that will be launched next year.
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Notably, Surge will also remove the minimum USD 1 million floor and invest as little as USD 300,000-500,000 to make it more relevant for a large pool of founders. There’s also no floor size to the investment range, which can start from USD 300,000 or less, the firm added.
“We’ve also met many pre-launch founders over the last few years who are still thinking through their product and want a smaller round to manage dilution, which also becomes more critical in a down-market," it explained.
Sequoia, which kick-started Surge in 2019 to sharpen its focus on early-stage investing, has launched six cohorts and more than 20 percent of the selected startups were pre-seed when it partnered with them. The firm has backed 112 startups through the Surge program and they have collectively raised over $1.5 billion in follow-on rounds. Some of the notable startups to come out of Surge include Scaler Academy, Khatabook, Bijak, Classplus, Hevo Data, Juno, Atlan, BukuKas, Plum, Apna Club and Doubtnut.
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