# Venture capital scout program

> A scout program is an arrangement in which a venture fund gives trusted people, often founders or operators, a way to find or back early startups on its behalf. Some scouts invest small amounts of the fund's capital and share in the profits; others only refer companies, for a fee or goodwill. Either way, the fund still decides whether to invest further.

Source: https://delsivo.com/glossary/scout-program · Updated 2026-11-06

## Key takeaways

- Scouts widen a fund's reach into networks its team doesn't have.
- Programs differ: some scouts invest, some only refer.
- Founders should know when a scout is acting for a fund.

## How a scout program works

- Investing scouts get a small pool of capital and back companies within agreed limits.
- Referral scouts send promising companies to the fund and get credit if it invests.
- Scouts usually share in profits from their own deals rather than earning a salary.
- The fund sets rules on disclosure, conflicts and which deals scouts may take.

## An example

A fictional seed fund gives five former founders $100,000 each to invest in companies at the earliest stage. When one of those companies raises a seed round, the fund's partners review it like any other deal; the scout's cheque is a signal, not a decision.

## Scout deals in a fund's process

Scout and referral deals need two things recorded: where each deal came from, so the fund can see which sources work, and any conflict the scout has. Scout and referral links in Delsivo are planned for a later release; private referral links on a fund's portal are planned for the Pilot release.

## Common confusions

- Scout versus venture partner: venture partners are usually part of the fund's team; scouts sit outside it.
- Scout versus angel: a scout may also be an angel, but in the program invests the fund's money.
- A scout investment does not commit the fund to a later round.

## Frequently asked questions

### How are VC scouts paid?

Usually with a share of the profits from the deals they find or back. Some programs pay referral fees; terms vary by fund.

### Should founders know a scout represents a fund?

Yes. Clear disclosure lets founders weigh the cheque and any signal it sends, and good programs require it.

### Do scout programs replace inbound applications?

No. They add another source. Most funds still run inbound and referral channels alongside scouts.

## Related pages

- [Deal sourcing](https://delsivo.com/glossary/deal-sourcing)
- [Deal flow](https://delsivo.com/glossary/deal-flow)
- [White-label portals](https://delsivo.com/white-label-portals)
- [Follow-on investment](https://delsivo.com/glossary/follow-on-investment)