Sequoia’s Surge raises funding ceiling to $3m

Sequoia Capital India’s Surge has expanded the funding cap for its startups to US$3 million, up from the current US$1 million to US$2 million range.

Team Surge / Photo credit: Surge

The increase is aimed at making the accelerator accessible to more founders, including those who have already raised seed funding.

The higher cap will also help founders have a better runway and the time they would need to improve the product and build a team before they seek a series A round, said the accelerator.

The move comes amid the “funding winter” that has led to a decline in the valuations of several startups. Surge hopes raising the ceiling will benefit founders as “investors are being more cautious, and follow-on rounds may take longer to close.”

See also: Is Asia ready for Sequoia’s perpetual fund model?

It is also doing away with the minimum US$1 million funding cap – a change that will help founders seeking a much smaller amount, especially those who are in the idea phase. Going forward, founders can raise a relatively lower amount – say US$300,000 or US$500,000 – from Surge.

“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 accelerator said in a blog post.

The changes come into effect with Surge 08, the program’s upcoming cohort.