How venture capital scout carry works

Venture capital scouts help investors discover companies through their networks and specialist knowledge. Some programs reward introductions with a share of investment profits, called carry. The useful question is not just “What percentage do I get?” It is “A percentage of what, on which deals, and under which agreement?”

Scout programs can work differently

A scout might introduce a founder for a fund to evaluate, or have an allocation they can recommend deploying under a program’s rules. The label alone does not tell you who makes the investment decision. Before joining, ask what authority the scout has, what the fund expects, and how the program records an introduction.

Hustle Fund’s guide to scout programs describes different structures. Treat any comparison as a starting point: the specific program agreement determines the actual economics and responsibilities.

Understand the carry base

Carry is a share of eligible profits under an investment arrangement. It is different from a salary or a fee paid when you send an introduction. A carry percentage by itself is incomplete. Ask whether it applies to a particular investment or a wider pool, how profits are calculated, and which expenses or deductions come first.

• Attribution: What counts as originating a deal? What happens if the fund already knows the company or multiple scouts refer it?
• Eligibility: Must the fund invest? Do follow-on investments qualify? Are there other conditions?
• Calculation: What does “net carry” mean in this agreement, and what is deducted before your share?
• Timing: What must happen before carry becomes distributable, and when are distributions made?
• Continuity: What happens to an eligible allocation if you leave the program?

A simple example of the arithmetic

Suppose an agreement allocates 50% of eligible net carry to a scout, and a qualifying deal eventually produces $20,000 of distributable net carry after the agreement’s deductions. The scout’s share would be $10,000. This is a hypothetical illustration of multiplication, not a forecast of returns or a description of every program’s waterfall.

A deal may never generate distributable carry. Even a promising company does not create a payment simply because the fund invests. Understand the conditions and timing before treating carry as expected income.

Make the introduction useful

A useful scouting note explains what the company does, why the founder is credible, what you have directly observed, and why the company might fit the fund’s strategy. Include the website, current deck when available, stage, fundraising context, and the important questions still unanswered.

Distinguish personal knowledge from the founder’s claims. Get the founder’s permission before sharing private materials or making an introduction. Avoid promising a check, a valuation, or a decision date that the fund has not agreed to.

How ADIN describes its scout program

ADIN’s scout page offers 50% of net carry on eligible deals you source that ADIN funds. Scouts do not need to invest their own capital to participate. The GPs make the final investment decision; sourcing a company does not itself authorize an investment.

Eligibility, attribution, deductions, and payment timing depend on the applicable agreement. Read those terms alongside the headline percentage so you understand the contribution being rewarded and the events that could lead to a distribution.