Sequoia Scout

The Sequoia Scout program is not an independent investment firm operating in stealth mode, but rather a strategic initiative directly managed by Sequoia Capital, one of the world's most prominent venture capital firms. Launched over a decade ago, this program empowers a select network of founders, operators, and industry experts, known as "scouts," to identify and make small, early-stage investments on Sequoia's behalf. The primary goal is to gain early access to promising startups, foster relationships with emerging entrepreneurs, and uncover nascent market trends that might otherwise fall outside the traditional VC sourcing funnel.

Investments made through the Sequoia Scout program typically target pre-seed or seed-stage companies, often before they are ready for a larger institutional round. The typical first cheque size from a Sequoia Scout ranges from approximately $25,000 to $250,000, though larger amounts can be deployed in exceptional cases. This model allows Sequoia to cast a wider net and engage with innovative ventures at their earliest inception, providing crucial capital and validation to founders while offering Sequoia a potential pipeline for future, larger investments. The program's discreet nature, where individual scout activities and specific deals are not widely publicized, often contributes to the perception of it operating "in stealth."

Scouts participating in the program are often highly respected figures in the tech ecosystem, including successful founders who have previously raised capital or exited companies, and experienced operators with deep domain expertise. These scouts are compensated through a share of the profits, or "carry," from successful investments they facilitate, aligning their incentives with Sequoia's long-term success. The Sequoia Scout program has been widely emulated across the venture capital industry, setting a precedent for how established firms can decentralize early-stage deal sourcing and build a robust network of entrepreneurial talent. Its enduring presence underscores its effectiveness as a vital component of Sequoia Capital's broader investment strategy.