Sequoia shutting down its Scouts program marks the end of an era
Sequoia pioneered the scouts model and many VC firms followed suit, but a consensus now seems to be forming that the model has reached limits in its current form.
Key points
- Sequoia announced a broad overhaul this week, including closing its London office and ending its scout program.
- Sequoia pioneered the scouts model 17 years ago, and many VC firms followed its lead.
- Former scout Roxanne Varza said she hopes other funds won't follow suit.
Sequoia announced a broad overhaul this week in a memo posted to X, including the closure of its London office and the shutdown of its scout program, in which select founders and operators write checks on the firm's behalf. Sequoia pioneered the model 17 years ago, and many venture capital firms later adopted similar programs.
Observers cautioned against reading too much into the London closure, since the British capital has a thriving AI scene. The end of the scout program, by contrast, is seen as saying more about where venture investing is headed, with a consensus emerging that the model has reached its limits in its current form.
How the memo framed it
Sequoia did not argue against scouts in the memo. It presented the decision as part of a need for more focus, describing a goal of "putting more energy behind fewer people and things."
Not everyone was convinced by the model in the first place. VC Sheel Mohnot wrote on X that it "never made sense to me," adding that scouts do not care much about the investments and that firms can still miss deals, as happened with Uber. He said he suspects other firms will shutter their programs too.
While Sequoia may be cutting the program, venture partner-style deals are likely to continue
— Roxanne Varza
Rival firms revamp programs
Andreessen Horowitz rolled out a global scout network aimed at opportunities in the U.S. and smaller European hubs. Partner Gabriel Vasquez told TechCrunch earlier this year that the firm had revamped its program to focus on "the best people," giving scouts more budget while reducing their number.
Station F boss Roxanne Varza, a Sequoia scout from 2020 to 2025, wrote on LinkedIn that she was sad to hear the program was being cut off and hoped other funds would not follow suit. She told TechCrunch that scouting had often been a stepping stone for aspiring investment managers and helped foster Europe's early-stage investment landscape.
