Sequoia shuts down its Scouts program, TechCrunch reports

Sequoia Capital is shutting down its Scouts program, according to TechCrunch today. The firm pioneered the scouts model that let trusted operators back startups with Sequoia’s capital, reshaping early-stage deal flow. Its closure marks a shift for venture funding dynamics as the industry reassesses how to source and back the earliest rounds worldwide.

TechCrunch reports a growing consensus in VC that the approach has hit limits in its current form, even as many firms widely copied it over the past decade. Sunsetting Scouts could push more founders toward traditional seed funds and operator angels, while Sequoia may refocus on other early-stage channels and partnerships. Watch for whether rival firms unwind their own scout efforts and how Sequoia outlines a replacement strategy in the coming weeks. [Developing. This article will be updated.]