Key Takeaways
- • Sequoia announced a broad overhaul in a memo posted to X that includes closing its London office and shutting down its scout program, according to TechCrunch.
- • Sequoia pioneered the scouts model 17 years ago, in which select founders and operators write checks on the firm's behalf; many VC firms followed suit amid competition for deal flow.
- • Sequoia framed the decision as a need for more focus, stating its goal of "putting more energy behind fewer people and things" rather than making a case against scouts.
- • Rival a16z revamped its scout program to double down "on the best people," giving scouts more budget while reducing their number, per partner Gabriel Vasquez.
- • Observers expect scout programs to be revamped rather than eliminated, as venture partner-style deals are likely to continue for early-stage and niche opportunities.
Summary
Sequoia this week announced a broad organizational overhaul in a memo posted to X, a move that includes closing its London office and shutting down its scout program. Observers cautioned against reading too much into the London closure given the city's thriving AI scene, but the decision to end scouts, according to TechCrunch, says more about where venture investing is headed.
Sequoia pioneered the scouts model 17 years ago, in which select founders and operators write checks on the firm's behalf. Amid increased competition for deal flow, many VC firms followed suit, but a consensus is now forming that the model has reached its limits in its current form. Sequoia did not make a case against scouts in its memo; instead it framed the decision as part of a broader need for more focus, with its goal of "putting more energy behind fewer people and things" expected to resonate with critics of the "spray and pray" approach to scouting.
Not all observers were persuaded by the model. VC Sheel Mohnot wrote on X that the program "never made sense" to him, arguing scouts do not particularly care about the investments and that firms can still miss deals, citing Uber as an example. He predicted other firms would shutter their programs too.
Rival Andreessen Horowitz (a16z) rolled out a global scout network aimed at spotting opportunities in the U.S. and smaller European hubs, but partner Gabriel Vasquez told TechCrunch earlier this year that the firm had revamped its program to double down "on the best people." Scouts now receive more resources but are expected to be more active, such as co-hosting dinners with the firm. "They get more budget, but we have reduced the number," Vasquez said.
Station F head Roxanne Varza, a former Sequoia scout from 2020 to 2025, said on LinkedIn she was "sad" to hear of the cut and hoped other funds would not follow. She told TechCrunch she had no information beyond public statements, but noted scout roles often served as a stepping stone for aspiring investment managers, helping them build track records and fund relationships. She also credited such programs with fostering the investment culture and early-stage landscape seen in Europe.
The article suggests two reasons the programs may have run their course: seasoned operators can earn more upside as angels, keeping returns on their own money, and leading firms are now large enough that top founders seek them out, reducing concern about missed deals except at the earliest stages or in niches and geographies where they have less reach. Varza nonetheless expects venture partner-style arrangements to continue, saying "Scouts was just a way to scale the format."
Sequoia pioneered the scouts model 17 years ago, in which select founders and operators write checks on the firm's behalf. Amid increased competition for deal flow, many VC firms followed suit, but a consensus is now forming that the model has reached its limits in its current form. Sequoia did not make a case against scouts in its memo; instead it framed the decision as part of a broader need for more focus, with its goal of "putting more energy behind fewer people and things" expected to resonate with critics of the "spray and pray" approach to scouting.
Not all observers were persuaded by the model. VC Sheel Mohnot wrote on X that the program "never made sense" to him, arguing scouts do not particularly care about the investments and that firms can still miss deals, citing Uber as an example. He predicted other firms would shutter their programs too.
Rival Andreessen Horowitz (a16z) rolled out a global scout network aimed at spotting opportunities in the U.S. and smaller European hubs, but partner Gabriel Vasquez told TechCrunch earlier this year that the firm had revamped its program to double down "on the best people." Scouts now receive more resources but are expected to be more active, such as co-hosting dinners with the firm. "They get more budget, but we have reduced the number," Vasquez said.
Station F head Roxanne Varza, a former Sequoia scout from 2020 to 2025, said on LinkedIn she was "sad" to hear of the cut and hoped other funds would not follow. She told TechCrunch she had no information beyond public statements, but noted scout roles often served as a stepping stone for aspiring investment managers, helping them build track records and fund relationships. She also credited such programs with fostering the investment culture and early-stage landscape seen in Europe.
The article suggests two reasons the programs may have run their course: seasoned operators can earn more upside as angels, keeping returns on their own money, and leading firms are now large enough that top founders seek them out, reducing concern about missed deals except at the earliest stages or in niches and geographies where they have less reach. Varza nonetheless expects venture partner-style arrangements to continue, saying "Scouts was just a way to scale the format."
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