Sequoia this week announced a broad overhaul in a memo posted to X, a move that includes closing its London office and shutting down its scout program. Observers warn that it would be a mistake to read too much into the London closure, since the British capital has a thriving AI scene. On the other hand, the decision to end scouts says more about where venture investing is headed.
That’s partly because 17 years ago, Sequoia pioneered the scouts model, in which select founders and operators write checks on the firm’s behalf. Amid increased competition for deal flow, many VC firms followed suit. But a consensus now seems to be emerging that the model has reached its limits in its current form.
