Sequoia closes $195 million second seed fund amid financing boom for early-stage startups

Sequoia Capital India has closed a $195 million second seed fund as part of its Surge programme, which backs seed and early-stage startups through funding and mentorship. Launched in 2019, Surge invests in pre-Series A startups in India and Southeast Asia and had kicked off with a corpus of $200 million.

The new capital will add to the already frenetic dealmaking being seen in India at seed and Series A financing rounds. ET reported that young startups have been flooded with multiple term sheets and offers of investment even before they have launched their products. Average deal sizes have gone up substantially and rounds are closing in record time akin to the euphoria of the 2014-15 funding boom.