What is the difference between an internal and an external VC scout?
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.
Answer
Internal VC Scouts
Internal VC scouts serve as full-time pr part-time team members within a fund usually as interns, researchers, associates, or junior partners. Internal VC scouts aren't always considered scouts because although they deal with securing deal-flow they may not be considered a scout in the traditional sense of the term as they may have other responsibilities inside the VC firm. They primarily want to meet as many entrepreneurs as possible and connect them to the company's crowdfunding ecosystem.
External VC Scouts
External VC scouts are persons who work for a fund. They are not full-time employees and are provided with no or little budget. In the majority of situations, they are entrepreneurs or other members of the ecosystems who have been chosen based on their application or via their connections to the VC firm. Several VC firms allow external scouts to participate in their VC scout programs, providing them the option to start their own investment or earn a referral fee.