Product managers and engineers often become VC scouts by leveraging domain insight and networks to spot startups and write tiny checks that build an investing track record.

Scouts win deal flow by mining accelerators, product-launch sites, dev communities, Slack groups, AngelList, hackathons and university incubators beyond personal networks.

Early scout programs drew criticism for secrecy and conflicts – founders risked negative signaling and scouts had little skin in the game, sparking calls for more transparency and alignment in these arrangements.

By the late 2010s scout programs went mainstream, with most major VC firms and many smaller ones adopting them – a rapid shift from a niche practice to an industry standard for sourcing deals.

Notable early VC scouts include Jason Calacanis (who sourced Uber for Sequoia) and Sam Altman (who scouted Stripe), along with founder-scouts like Airbnb’s Brian Chesky – all leveraged their networks to spot huge deals.

Sequoia’s scout program famously scored hits like Uber and Stripe from tiny early bets, proving that empowering external scouts can yield outsized venture returns.

VC firms use scouts to widen their deal funnel – an efficient way for large funds to scan early-stage startups via trusted networkers, ensuring they don’t miss the next big thing.

Once a secret weapon used quietly by a few firms, VC scouts have become a structured, global phenomenon – with formal programs, cohort budgets, and a recognized pathway into venture.

Both types of scouts have as their main goal to source new startup deals to invest in. lInternal VC scouts are usually part-time or full-time employed as an intern, researcher, associate, or junior partner. External scouts are not officially employed by the investor and are usually compensated on a deal-by-deal basis.

Venture scouts are resourceful connectors that may assist venture capital firms in discovering hidden, exceptional startups and founders to invest in ahead of the competition.

While both documents may contain similar elements, it's the angle from which each is written that makes the difference.

Yes, you can. In fact, unless you're independently wealth, you should work while being a scout to sustain a living.

Having investment experience is not a requirement to start a role as a VC scout. So for example you don't need to have a history of investing your or other people's money in startups.

As a VC scout, you can expect to have a different compensation or salary based on the firm you work with. Options include cash on deal completion, cash for relevant intros, startup equity proportional to the investment, and your own micro-fund.

A VC scout is a part-time talent spotter who sources startup deals for a venture fund, investing small amounts and earning a share of the profits.