Sequoia This week, in a memo posted on X, they announced major adjustments, which included closing their London office and terminating their scout project. Observers warn against overinterpreting the closure of the London office, as the British capital boasts a thriving AI ecosystem. On the other hand, the decision to end scouts is more indicative of the direction in which venture capital investments are heading.

Part of the reason is that 17 years ago, Sequoia pioneered the scout model, where selected founders and operators represented the company in making investments. As competition for project sources intensified, many venture capital firms followed suit. However, it now seems there is a growing consensus that this model has reached its limits in its current form.

Not everyone was optimistic about this model from the start. Venture capitalist Sheel Mohnot wrote on X this week: “They initiated the scout project, but to be honest, it never made sense to me!”

He added, " scouts itself isn't really that concerned about these investments; you'll still miss out on opportunities (just as they missed out on Uber), and I'm not sure what this will bring. I guess other institutions will also shut down their own projects."

It should be noted that Sequoia did not raise any objections to scouts in the memorandum. On the contrary, it described this decision as a result that requires a broader focus. However, its goal of “putting more effort into fewer people and fewer things” may resonate with those who question the “wide-net” approach of scouting.

For example, competitor Andreessen Horowitz ( a16z ) launched a global scout network aimed at identifying opportunities in the United States and smaller central cities in Europe. However, a16z partner Gabriel Vasquez told TechCrunch earlier this year that the company has adjusted this project to focus instead on betting double on “the best of the best.”

Under this new approach, Vasquez explained that scouts will receive more resources, but is also required to be more actively involved, such as co-hosting dinners with the company. “They have received more budget, but we have reduced the number of participants,” he said.

This also seems to indicate that it is the venture capital firms themselves that are driving the adjustment of this model. For founders, becoming a scout is very attractive: it allows them to get closer to institutions that they may wish to seek investment from in the future, and they even have the opportunity to take on roles as partners; those who are seen as capable of writing checks can also enhance their status among other founders.

Some scouts will undoubtedly feel regretful about the end of the Sequoia project. This includes Station F, the person in charge of Roxanne Varza. She wrote on LinkedIn that she felt "sad" to hear about the cancellation of the project and "hopes that other funds will not follow suit."

Varza served as Sequoia scout from 2020 to 2025. She told TechCrunch that she didn't have any additional information beyond what was made public, but she observed that becoming scout is often a stepping stone for those who aspire to become investment managers.

"I can't mention by name all the outstanding scouts who later joined or founded the fund, but there are indeed quite a few of them. The scout project may have helped them get to where they are today – by allowing them to establish a track record of investment performance and by enabling them to directly build relationships with different funds, and so on," she wrote in an email sent to TechCrunch.

In Varza, it seems that the impact of this project does not remain at the individual level; it also helps to make the entire ecosystem more mature. "I believe they have contributed to fostering the investment culture and early-stage investment patterns that we see in Europe today," says Varza.

Although others may agree with Varza's view on the impact of these initiatives, they could still come to an end for two reasons. First, experienced operators, acting as angel investors, may achieve higher financial returns. When investing their own money, those returns also belong to them. Second, leading venture capital firms have now become large and well-known enough that the most outstanding founders often approach them on their own, so their concern about missing out on deals is reduced, unless it is in the very early stages or in niche sectors and regions that they do not reach frequently.

However, the attractiveness of early-stage and niche transactions also means that the scout project is more likely to be redesigned rather than completely disappear. Varza said in an email sent to TechCrunch: "Although Sequoia may reduce this project, transactions in the style of venture and partner are likely to continue to exist. scouts is just a way to scale this model. I don't think Sequoia will end all forms of venture and partners, but they are always full of surprises."