This episode is part of a three-part series taking listeners behind the curtain to discuss the inner workings of venture capital. On this episode Erik is joined by Parker Thompson (@pt), partner at AngelList, and angel investor Dustin Dolginow (@dolginow). The trio discuss the past, present and future of scout programs. They start out by talking about Sequoia’s creation of the scout program nearly ten years ago and why it was considered a “loss leader” for the firm, meaning that it generated goodwill and created a network, but the return on the deals was not actually very good. The three of them discuss some of the potential pitfalls of the scout program, whether it can create good returns on its own, and the similarities and differences of Village’s Network Leader program to existing scout programs. Both Dustin and Parker have worked at AngelList, and the two discuss why AngelList’s model, which Parker calls a “1099 VC model.” They talk about how and when we might see a recreation of the consensus decision-making system that pervades the industry today and why that change is needed. They also talk about how someone seeking to get into venture or being a scout for a venture fund can do so. Thanks for listening — if you like what you hear, please review us on your favorite podcast platform. Check us out on the web at villageglobal.vc or get in touch with us on Twitter @villageglobal. Venture Stories is brought to you by Village Global, is hosted by co-founder and partner, Erik Torenberg and is produced by Brett Bolkowy.