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Sequoia Capital's startup incubator, Surge, is challenging Y Combinator's (YC) dominance in India's startup landscape. While YC has been known for providing early-stage companies with support, its recent larger cohorts and lack of local partners have left some Indian founders feeling overlooked. Surge, on the other hand, has maintained smaller cohorts and built a team focusing on the Indian market. Moreover, Surge provides differentiated and market-based deals for startups, while YC's standard funding template has become less appealing to founders and investors. Additionally, YC requires startups to establish a holding company in the US, which can be a significant hurdle for India-focused companies. As a result, Surge is emerging as the preferred choice for many Indian entrepreneurs, forcing YC to adapt to stay relevant in the region.
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