Sequoia Capital Closes $195M Seed Fund to Support Early-Stage Founders

Venture capital powerhouse Sequoia Capital has closed a new $195 million seed fund, its fifth, to back founders across the US and Europe.

The firm also announced plans to run three batches, up from two last year, of its Arc accelerator program – an internal Sequoia initiative that invests between $500,000 and $1 million into rising founders across the world and that’s currently accepting applications, according to its website.

Despite fewer companies starting up, Sequoia believes now is a good time to invest in seed-stage companies, as they are more insulated from the effects of the public market.

Jess Lee, a Sequoia partner and All Raise co-founder, said the firm will be looking at all verticals for potential outlier founders, but specifically called out artificial intelligence and consumer social as two areas to invest in.

Roelof Botha, the recently appointed global head of Sequoia, said he’s looking for founders who are taking advantage of a more disciplined market, and the decreasing cost of automation, artificial intelligence and even genetic sequencing.