Scout programs within T1VCs are such a black box and can be a double-edge sword for founders/signaling risk, especially for startups in the cusp of validating PMF

Yet, not all scout programs are run the same (deals sourced might not even make it to ICs), but the optics still remain and add unwanted complexity to any funding round

When a T1 fund doesn't invest in a deal sourced by a scout, the looming question of what do they know (insider info) that the market doesn't is hard to ignore

Principal at Cobalt Ventures. Write @ TheItinerant.io ; BenErsing.com Host: /venturecapital /finance

What YC Continuity did to YC batches was 100% signaling risk, they only doubled down on breakout startups. But scout programs are not necessarily feeding dealflow exactly the same way across their firms (some do). So a VC not investing on a scout deal might not necessarily mean lack of conviction