Sequoia Kills Scout Program It Invented 17 Years Ago

Sequoia is shutting down the scout program it pioneered 17 years ago. The firm announced the move this week in a memo posted to X, alongside the closure of its London office. The London exit says little; observers note the British capital has a thriving AI scene. The end of scouts says a great deal about where venture investing is headed.

Sequoia built the model in which select founders and operators write checks on the firm's behalf. As competition for deal flow intensified, many VC firms copied the format. A consensus is now emerging that the model has reached its limits in its current form.

What did critics say about scouts?

Not everyone accepted the premise from the start. "They pioneered the scout program but [to be honest] it never made sense to me!" VC Sheel Mohnot wrote on X this week. "The scouts themselves don't really care that much about the investments, you can still miss (like they did with Uber), not sure what it gets you. I suspect other firms will shutter theirs too."

Sequoia did not argue against scouts in its memo. The firm framed the decision as part of a broader need for focus. Its stated goal of "putting more energy behind fewer people and things" is likely to resonate with others who have questioned the "spray and pray" approach to scouting.

How are rivals responding?

Andreessen Horowitz operates a global scout network that targets opportunities in the U.S. and smaller European hubs. But a16z partner Gabriel Vasquez told TechCrunch earlier this year that the firm had revamped its program to double down "on the best people."

Under the new approach, scouts receive more resources and face higher expectations, such as co-hosting dinners with the firm. "They get more budget, but we have reduced the number," Vasquez said.

VC firms, not founders, have driven the overhaul. For founders, a scout role remains attractive. It brings them closer to firms that may one day write them checks or offer a partner role. Being seen as someone who can write a check also raises standing among other founders.

Why did the program run its course?

Roxanne Varza, who runs Station F and served as a Sequoia scout from 2020 to 2025, wrote on LinkedIn that she was "sad" to hear the program was cut and "hope[d] that other funds [w]on't follow suit."

Varza told TechCrunch she had no information beyond the public memo. But she observed that scouting had often served as a stepping stone for aspiring investment managers.

"I cannot name all of the incredible scouts that have gone on to join or build funds, but there are quite a few," she wrote. "And the scout programs may have helped them get there — allowed them to build an investment track record, allowed them to build relationships with various funds directly, and more."

The impact reached beyond individuals, in her view. "I believe they have helped to foster the investment culture and early-stage investment landscape that we now see in Europe, for example," Varza said.

Even those who credit the programs see two reasons they have run their course. First, seasoned operators earn more as angels: with their own money, they keep the returns. Second, leading firms are now large and famous enough that the best founders come to them, so they fear missing deals only at the earliest stages or in niches and geographies where they lack reach.

Will scout-style deals survive?

The pull of early and niche deals makes a revamp more likely than extinction. "While Sequoia may be cutting the program, venture partner-style deals are likely to continue," Varza said. "Scouts was just a way to scale the format. I don't imagine Sequoia would end all forms of venture partners, but they are full of surprises."