Sequoia ends its scout program as venture firms rethink the model

Sequoia introduced the model of selected founders and operators investing on a firm’s behalf. As competition for deals grew, other venture firms adopted similar programs. Now, some investors argue that scouting in its existing form has reached its limits.

VC Sheel Mohnot said on X that the program never made sense to him, arguing that scouts may not be sufficiently invested in their picks and that firms can still miss major opportunities, citing Sequoia’s missed investment in Uber. Sequoia’s memo did not criticize scouting directly; it presented the changes as a bid to focus “more energy behind fewer people and things.”

Andreessen Horowitz has also revised its approach. Partner Gabriel Vasquez told TechCrunch earlier this year that the firm had reduced the number of scouts while giving those it retained more resources and expecting greater involvement, including co-hosting dinners.

Station F chief Roxanne Varza, a Sequoia scout from 2020 to 2025, said she was sad to see the program end and hoped other funds would not follow. She told TechCrunch that scouting had helped aspiring investment managers build track records and relationships, and had contributed to Europe’s early-stage investment culture. She added that venture partner-style arrangements are likely to continue, even if the scout format changes.

Two pressures may be driving the shift: experienced operators can invest as angels and keep the returns, while prominent firms increasingly attract founders directly. Scouting may still help firms reach very early-stage companies and founders in niches or regions beyond their usual reach.