Northzone launches Northstars scout program as Sequoia narrows its model
Northzone’s 25-operator network will source and co-invest in deals while Sequoia says it is ending Scouts to concentrate on fewer activities.
By Ingrid Halvorsen · Venture Capital Reporter
· 3 min read
Northzone has launched the Northzone Northstars scout program, an inaugural network of 25 European technology operators who will help find investments, co-invest in some companies they source and advise portfolio founders. The launch comes days after Sequoia said it had ended its own Scouts program as part of a broader restructuring aimed at more selective venture investing.
Northzone, which Sifted describes as a $3.1 billion venture firm, is using the network for both deal sourcing and portfolio work. The available podcast description does not specify investment amounts or Northstars’ financial terms. It also does not set out decision rights, co-investment allocation sizes, or conflict-management rules for members who bring companies into the firm’s process.
How will Northzone’s Northstars scout program work?
In its first year, Northstars members will participate in Northzone’s pipeline and investment process, according to VCWire and Tech.eu. They can identify potential investments and have the opportunity to invest alongside Northzone in companies they individually source. They are also expected to provide advisory and mentorship support to Northzone portfolio companies.
The group includes people from Adyen, Black Forest Labs, Coinbase, DeepL, ElevenLabs, Langdock, Lovable, Neko Health and XBOW, among others. Their roles span engineering, product, operations, go-to-market, marketing and talent. The network is not limited to C-suite executives: participants include chiefs of staff, a head of talent and a principal project manager, alongside executives such as DeepL’s CTO and Coinbase’s UK and Europe managing director.
Northzone partner Sam Endacott, who is leading the program with partner Elena Pantazi, framed the effort as a response to Europe’s fragmented technology hubs. Endacott said Silicon Valley benefits from capital and talent concentrated in one place, while European operators are dispersed across cities including Berlin, Stockholm, Zurich, Paris and London. Northzone’s stated aim is to connect those operators so they can share working practices and help founders.
Why did Sequoia end its Scouts program?
Sequoia said on November 4 that it had sunset both its Arc accelerator and Scouts program while pursuing “high-conviction, highly selective” venture capital investing, according to Dealroom. The firm said directing more effort toward fewer people and initiatives would improve the support it gives to portfolio founders.
The decision formed part of a wider overhaul that also included closing Sequoia’s London office, combining its Early and Growth teams and flattening its partnership, Dealroom reported. Sequoia did not give a more detailed public explanation specifically for ending Scouts.
Sequoia’s scout model began around 2009, according to Dealroom. It allowed selected founders and operators to make investments on the firm’s behalf and share in returns. The firm’s exit therefore does not establish that scout networks have failed. It shows a different operating choice: Sequoia is concentrating its activity, while Northzone is adding a limited, distributed group of operators with explicit sourcing and portfolio-support duties. Whether Northstars improves access to deals or produces investment returns remains unproven.
This story draws on original reporting from Sifted.
