Sequoia announced this week a strategic overhaul that includes closing its London office and terminating its scout program, a model the firm pioneered 17 years ago to broaden early-stage deal flow by empowering select founders and operators to invest on its behalf.
The decision reflects growing consensus within venture capital that the scout model, once a competitive necessity, has outlived its usefulness. Sequoia framed the move as part of a larger push for "greater focus," with the memo stating the firm aims to put "more energy behind fewer people and things."
VC Sheel Mohnot argued on X this week that the program "never made sense" to him, noting that scouts often deprioritize investments and firms still miss major opportunities—he cited Uber as an example. Mohnot predicted other firms would follow Sequoia's lead.
Andreessen Horowitz, which launched a global scout network to identify opportunities in the U.S. and smaller European hubs, has already begun restructuring its own program. Partner Gabriel Vasquez said in an earlier interview that a16z revamped the model to "double down on the best people." Under the revised approach, scouts receive more resources and higher expectations for active engagement—including co-hosting founder dinners—while the firm has "reduced the number" of participating scouts.
The shift away from dispersed scout networks reflects a broader recalibration in venture capital economics. The model thrived during a period of abundant capital and intense competition for deal flow. As multiples have compressed and capital has become more selective, venture firms are prioritizing concentrated bets and hands-on engagement with portfolio companies over volume-based sourcing strategies.
For founders, the scout role offered tangible benefits: proximity to capital, potential pathways to future funding or partner positions, and enhanced credibility among peers. Roxanne Varza, head of Station F and a Sequoia scout from 2020 to 2025, said on LinkedIn she was sad about the program's end, expressing hope that "other funds won't follow suit." She told TechCrunch she had no information beyond public statements but noted that numerous scouts have used the role as a stepping stone to establish or join their own funds.
Some observers cautioned against reading too much into Sequoia's closure of its London office, pointing to the British capital's robust AI sector as a continued investment draw.
