In a blog post, Sequoia India Capital announced its early-stage startup accelerator programme Surge will be extending its seed funding range to $3 million. The company stated:
“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.”
“In its current avatar, Surge invests in seed rounds for $1 million to $2 million. We’re extending the range up to $3 million, and with no minimum. This will allow us 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,” it added.
Image: Recode
The team mentioned that raising the ceiling gives several early-stage founders the runway and time needed to the right PMF (product-market fit), and build a strong team before it raises a Series A funding.
“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.
According to the post, the team has 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 the accelerator said becomes even more critical in a down-market.
“So, we’re also doing away with the $1 million floor. 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 programme,” the blog stated.
The team added that while some Surge startups have gained traction, others are at the idea stage.
“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,” the blog stated.
Surge startups have collectively raised over $1.5 billion in follow-on rounds, equipping them with the firepower to hire top talent and expand their offerings.
The accelerator said that many of its startups are solving for a range of problems in food security, financial inclusion, and sectors including edtech, fintech, agritech, healthtech, logistics, and consumer brands. Close to 40 percent of Surge startups are software companies.
