Scout Program

Product Introduction

1. Definition: Scout Program is a competitive venture capital accelerator platform that selects 10 early-stage investors ("scouts") per season to deploy $100,000 each into startups while publicly documenting their investment thesis and performance.
2. Core Value Proposition: It replaces opaque, decade-long reputation-building in venture capital with a transparent, high-stakes arena where scouts prove their investment skill through real capital deployment, public track records, and leaderboard rankings.

Main Features

1. Scout Fund Creation: Participants name their scout fund and publish their investment thesis. The platform tracks real-time standings via investments, follow-ons, and participation in Chapter One events.
2. $100K Capital Deployment: Scouts deploy $100,000 in non-dilutive capital (provided by Chapter One) into early-stage startups. Each investment is publicly logged, with portfolio valuations updated dynamically.
3. Performance Leaderboard: A real-time public ranking system displays scouts’ portfolio values, investment outcomes, and fund performance, fostering competition akin to fantasy sports with real financial stakes.
4. Mentorship Network: Access to 1:1 guidance from top-tier VCs (e.g., partners from Kleiner Perkins, USV, Khosla) and LPs (e.g., Pathstone, Cendana Capital) who refine scouts’ strategies.
5. Carry & Reputation Incentives: Scouts retain 100% of upside (20% profit share) on deals while building verifiable track records usable for future fund launches or operator roles.

Problems Solved

1. Pain Point: Eliminates venture capital’s traditional opacity and slow reputation-building by making scout performance, thesis development, and outcomes fully transparent and accelerated.
2. Target Audience: Early-stage investors, angel operators, and founders with niche access (e.g., deep tech specialists, crypto infrastructure scouts, consumer software connoisseurs) seeking to validate their investment acumen.
3. Use Cases:
   • An operator-turned-investor proving conviction in AI workflow tools via public deal memos.
   • A crypto scout leveraging unfair access to off-market deals to climb the leaderboard.
   • A product leader using technical fluency to identify and back category-creating deep tech startups.

Unique Advantages

1. Differentiation: Unlike traditional scout programs (private capital, no competition) or accelerators (theoretical training), Scout Program combines real capital, public leaderboards, and carry incentives—mirroring a venture "Olympics."
2. Key Innovation: Transparent, quantified performance metrics compress 10 years of reputation-building into one season. The integration of LP/VC mentors as "coaches" creates a talent pipeline vetted by industry gatekeepers.

Frequently Asked Questions (FAQ)

1. How does Scout Program select scouts?
   Scouts are chosen based on differentiated access, non-consensus theses, and founder empathy—targeting operators, angels, or investors with proven edge in niches like AI or crypto infrastructure.
2. What happens to scouts after the season ends?
   Top performers earn carry in Chapter One’s next fund, priority co-investment rights, and SPV leadership opportunities; all scouts retain 100% carry on their deals and public track records.
3. Can scouts collaborate or form partnerships?
   Yes, scouts may participate as solo investors or formal partnerships, deploying capital jointly while competing on the unified leaderboard.
4. Is Scout Program open to international applicants?
   Geography is not a barrier—scouts are evaluated on deal access and thesis quality, though portfolio startups must comply with U.S. investment regulations.
5. How are scout portfolios valued during the season?
   Valuations derive from follow-on rounds (e.g., HyperBeat’s 28% post-round spike) and real-time market data, with updates published transparently on the leaderboard.