Sequoia India Capital stated in a blog post that its early-stage startup accelerator Surge will increase its seed investment range to $3 million.
In its current avatar, Surge invests in seed rounds for $1 million to $2 million. They are extending the range up to $3 million, and with no minimum. This will allow them to make Surge relevant for a far larger set of founders, including those who are just starting up or those who have already raised a seed.
“The market may be slowing, but Surge is expanding. Given the extraordinary founder response and feedback we have received over the first six cohorts, we are widening the funding aperture for Surge startups” the company stated.
“Raising the ceiling gives early-stage founders the runway and time they need to find product-market fit and build a strong team before raising a Series A. 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 blog stated.
“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 even more critical in a downmarket. So we’re also doing away with the $1 million floor”, The team mentioned.
This means that applicants for Surge 08 and beyond could raise up to $3 million from Surge to help them construct an even larger round, or, do a smaller round – say $300,000 to $500,000 – and still be part of the program. While some Surge startups have traction, others are at the idea stage – over 20% of Surge startups were pre-launch when we partnered with them, the blog stated.
Across six cohorts, it has been a privilege to partner with 246 founders from 112 startups – including 64 from India and 45 from Southeast Asia. Surge startups have collectively raised over $1.5 billion in follow-on rounds, equipping them with firepower to hire top talent, expand their offerings and make a big impact on many industries and markets in the years to come, the team mentioned.
The company stated that “Our founders are solving a wide range of problems, from food security to financial inclusion. And they’re building in sectors including EdTech, FinTech, AgriTech, HealthTech, logistics and consumer brands. Over 40% of Surge startups are software companies that are building for the world, from Day One, everything from application and vertical SaaS, to Dev Tools and cybersecurity.”
Surge startups have collectively raised over $1.5 billion in follow-on rounds, equipping them with firepower to hire top talent, expand their offerings and make a big impact on many industries and markets in the years to come.