Key takeaways
- TechCrunch reported on November 6 that Sequoia is ending its scout program.
- Sequoia pioneered the model about 17 years ago and is also closing its London office, per TechCrunch.
- Andreessen Horowitz says it cut its own scout network to fewer people with more budget.
Sequoia Capital is ending its scout program, TechCrunch reported on November 6, according to TechCrunch. The firm pioneered the Sequoia scouts model about 17 years ago, and many other venture firms copied it.
Under the model, selected founders and operators invested on the firm's behalf and passed deals to the partners. TechCrunch says the closure came in a broader overhaul that also includes shutting Sequoia's London office. The firm's memo, as TechCrunch describes it, did not criticize scouts. It said Sequoia wants to put more energy behind fewer people and things.
Why it matters
The scout model spread because competition for early deals was intense. TechCrunch quotes investors who think it has reached its limits: experienced operators can keep all the upside by investing their own money as angels, and well-known firms now attract top founders without a scout network.
Andreessen Horowitz runs one of the largest scout programs. Partner Gabriel Vasquez told TechCrunch that the firm revamped it to focus on its best people, with more budget for fewer scouts. Roxanne Varza, who leads Station F and was a Sequoia scout from 2020 to 2025, said she hopes other funds do not follow, because scouts helped build investing track records and strengthened Europe's early-stage ecosystem.
Investor Sheel Mohnot told TechCrunch he expects other firms to close their programs too. TechCrunch's own read is that scout programs are more likely to be restructured than ended everywhere.
For founders, the change affects one route to a first check from a big firm. Watch whether other firms announce similar cuts. The details above come from TechCrunch's report, and we have not seen the memo itself.