How exactly does the Sequoia Scouts program work?

"Sequoia says it doesn't receive information rights, warrants, or a right of first refusal." "a scout also invests Sequoia's money but keeps any upside from the deal." Source: https://www.pehub.com/2012/05/si... Edit: new details from Jason McCabe Calacanis new book Angel: 20 scouts, of which he was one; Returns split:. read more

"Sequoia says it doesn’t receive information rights, warrants, or a right of first refusal." "a scout also invests Sequoia’s money but keeps any upside from the deal." read more

Sequoia Capital is formalizing the Scout program that we first wrote about last year. It has filed paperwork with the SEC to raise the first separate financial entity to support the program. The program allows entrepreneurs in the Sequoia network to act as angels to newer entrepreneurs the same way any entrepreneur would. read more

The structure isn't exactly like a standard limited partner arrangement, because the bulk of the returns go to the scout, not the firm. Exactly what benefit Sequoia gets out of it remains unclear. I asked all three scouts if their deals would have likely pitched Sequoia eventually anyway, and most of them said yes. read more