Dealflow from scouts

Most deals still come through networks: introductions from founders the firm backed, co-investors, angels and advisors. Firms add outbound work, such as tracking companies through data tools, attending events, publishing content that attracts founders, and running scout programs that pay people for access to communities the partners cannot reach. The best early-stage deals are often seen by few investors, which is why firms invest in sourcing channels before a round is announced.

A fund gives scouts, often operators, founders or angels, a way to bring deals in exchange for a share of the upside. Some programs give scouts a small pool of capital to invest on the fund's behalf and a share of the carried interest on those investments. Others pay referral fees or a carry share when a referred company gets funded. Programs differ in how much discretion scouts have, how conflicts are handled and whether scouts are named publicly.

Be specific enough that a scout can tell yes or no in one conversation. Share the stages and check sizes you invest at, sectors and business models you like and avoid, regions, what traction you expect at your entry point, and examples of recent investments. Explain what you want in an introduction, such as a short note, deck and why the scout believes in the founder. Clear feedback on every referral trains scouts faster than any document.

Treat scout referrals like any other warm introduction, but track them. Record where each deal came from, how far it progressed and why it was passed on, and share that feedback with the scout. Over time this shows which scouts bring deals that fit and which communities produce the best founders. Watch for conflicts, such as a scout who is also an investor or advisor in the company, and require disclosure up front.