Sequoia India և Southeast Asia Expand Scope for Early Surge Plan – TechCrunch

Sequoia India և South East Asia is expanding its Surge checks as the well-known venture company seeks to make its major investments more relevant to a larger group of founders, it said Thursday.

The size of the venture company check Three year Surge program, which previously invested $ 1 million to $ 2 million in early-stage startups in the region, will now reach $ 3 million, it says. There is no investment floor size that can start at $ 300,000 or less, the company said.

This move comes at a time when the company, the most powerful and influential venture investor, realizes that some early-stage startups it supports through the Surge program need more capital, especially in the current market environment, while some companies are in such new stages. where they have no products, e.g. who can make smaller checks, said Rajan Anandan, CEO of Sequoia India և Southeast Asia, in an interview with TechCrunch.

Anandan, who previously served as one of Google’s most influential angel investors before joining Sequoia, India’s head of Southeast Asia, denied that the decision was a response to current market conditions, saying Sequoia had made the change. a few months, but said “inside [the current] in that context, it would be even more useful. “

As the size of its investments changes, the company said it did not want to acquire more ownership in young startups. The equity ratio for its investments will remain in the range of 10 to 20% as a ceiling limit, while there will be more flexibility in the floor area, he said.

Surge team. Image credits. Sequoia India և Southeast Asia

Sequoia has launched the Surge program, which is similar to the Y Combinator model, in 2019. The company selects 15 to 20 startups every six months for one or more months after evaluating hundreds of applications և in-person meetings: grouping them. The group spends 16 weeks learning the basics of finding their voice, best practices, and peer relationships.

The company, which has so far led six such groups, said it had supported 112 startups through the Surge program, which together raised more than $ 1.5 billion in later stages. “More than 20% of Surge startups were pre-launched when we partnered with them,” Sequoia said.

About 10% of Surge startups, including companies such as Doubtnut, Scaler Academy, Khatabook, Bijak, Classplus, Hevo Data, Juno, Atlan, BukuKas, Plum և Apna Club, have produced products և services for the world. In the latter group, about 50% of Surge companies were building for global markets from day one, the company said.

But: in contrast to YE batches, Surge cohort size does not change. “We like the number 15-20. The size of our cohort will remain about the same. We have 30 Surge members, ranging from people who help companies with technology, marketing and finance. “What we have learned is that maintaining the current size of the cohort allows us to go deeper with each of our companies,” he said.

Each Surge participant gets access to: Benefits worth an additional $ 2 million which include cloud loans with Google, Microsoft և AWS, corporate cards, well-known programmers, analytics, marketing և communication tools, insurance և compliance services. Sequoia also helps these companies find early customers, connects them with leading investors to finance the A Series.

Sequoia is also eliminating funding for the Surge program. Earlier, it twice raised $ 195 million for the early-stage program, but now it will raise capital directly from the motherhood that opened. A record $ 2.85 billion for the region earlier this month. “You can confidently assume that we will invest more than ever through Surge,” he said.

Even in the current market downturn, which has led to the record low of technology stocks in recent years, reduced the valuation of private companies. Anandan said that more young companies than ever before are applying for the Surge program, he did not notice any slowdown. enthusiasm in the ecosystem.

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