What is a Venture Scout

What is a venture capital scout?

A venture capital scout acts as a go-between between the fund and the individual. They work outside of the fund independently on their own.

What do they do?

Venture scouts are primarily about building and forming mutually beneficial relationships.

They identify promising startups at the early stage and pass on the deal to venture firms. Venture scouts act as a bridge to form a deal between the venture capital firm and business owner. They advocate and share information on the venture capital firm to the individual interested in funding.

Many companies are not aware that they need funding. They think they can apply for traditional finance or go the mainstream route. Often many do not realize they need help until a vc scout reaches out to them. However, some may be aware of their need for funding but lack the knowledge and resources to acquire funding.

This is where venture scouts step in. Often they will invest small check sizes ($25K — $50K) in very early-stage companies. They are the first initial investors in the start-up phase for business owners, which is critical for the success of the business.

Following this initial funding, the vc scout passes the business owner over to the venture capital firms, who can fund…