Roles & Careers
What is a VC scout program?
Scout programs pay individuals — usually founders, angels, or operators — to source deals on behalf of a VC fund. Scouts get a small allocation of carry if their referred companies are funded. It's a way for funds to extend their network and for aspiring VCs to build a track record.
Scout programs became widespread after Sequoia Capital pioneered the model around 2009. The basic structure: a VC fund provides scouts with a small check size ($25K–$100K) to make investments. If the deal performs, the scout earns a portion of the carry (typically 15–30% of the GP economics on that specific deal).
Scouts are typically: - Founders of companies in a fund's portfolio (who have natural access to the next wave of founders) - Operators at notable companies - Aspiring VCs building a track record - Angels with strong networks in a specific geography or sector
From the fund's perspective, scout programs expand sourcing reach into communities a fund might not naturally have access to. A fund in Menlo Park can use scouts to see deals in New York, Austin, London, or within specific verticals.
From the scout's perspective, it's an opportunity to develop investment judgment, build relationships with GPs, and earn carry without being a full-time investor. Some scouts eventually join the fund or use their track record to raise their own vehicles.
The economics vary. Some programs give scouts real carry on specific deals. Others give a small percentage of carry on a broader pool. The terms significantly affect the incentive alignment.
Not all programs are created equal. Some are genuine partnership programs; others are mostly marketing with minimal economic upside.