What Is a VC Case Study?
Most VC interview processes include a case study — either as a take-home exercise (typically 48–72 hours) or a live exercise during the interview. You'll be asked to evaluate a company and present your investment recommendation.
The output is an investment memo: a structured document that makes the case for (or against) investing. Partners use these memos internally to make real investment decisions, so showing you can write one is the single most valuable skill in a VC interview.
Investment Memo Structure
A strong investment memo follows this structure. Aim for 3–5 pages total.
1. Executive Summary (1 paragraph)
Lead with your recommendation. State whether you'd invest, at what terms, and the 2–3 most compelling reasons. A partner should be able to read only this paragraph and understand your thesis.
Example
"I recommend investing $5M in Acme Corp's Series A at a $40M pre-money valuation. Acme has built the leading API for [specific problem] and is growing ARR 3x YoY to $2.4M with 140% NRR. The founding team includes two repeat founders with deep domain expertise in [sector]. Key risks include customer concentration and an emerging competitive threat from [company]."
2. Company Overview
- What does the company do? (1–2 sentences, no jargon)
- When was it founded? Where is it based?
- What stage is it? How much has it raised?
- Who are the founders and what's their background?
3. Market Analysis
- Market size — TAM, SAM, SOM with methodology (bottom-up preferred over top-down)
- Market dynamics — Is this winner-take-all or fragmented? Is it growing?
- Tailwinds — What structural trends make this market more attractive now?
- Competitive landscape — Who else is building here? What's the company's moat?
4. Product & Traction
- What is the product and how does it work?
- Key metrics: ARR/MRR, growth rate, NRR, customer count, usage metrics
- Product-market fit evidence: retention curves, expansion revenue, customer testimonials
- Technology defensibility: patents, data advantages, network effects
5. Team Assessment
- Founder-market fit: why are these the right people to build this?
- Track record: previous companies, exits, domain experience
- Team completeness: do they have the key hires needed for this stage?
- Red flags: founder dynamics, key person risk, gaps in experience
6. Financial Analysis
- Unit economics: CAC, LTV, payback period, gross margin
- Burn rate and runway
- Revenue model and pricing strategy
- Path to profitability or next fundraise
- Comparable company valuations
7. Risks & Mitigants
List 3–5 specific risks and how each could be mitigated. This section shows maturity — VCs invest despite risks, not in the absence of them. Strong candidates acknowledge risks honestly and explain why they're acceptable.
Example Risk Table
| Risk | Severity | Mitigant |
|---|---|---|
| Customer concentration (top 3 = 60% rev) | High | Pipeline shows 10+ enterprise prospects closing in Q2 |
| Stripe launching competing feature | Medium | Different GTM (enterprise vs. SMB), deeper integration |
| CTO departure risk (single technical founder) | Medium | VP Eng hired 6 months ago, knowledge transfer underway |
8. Investment Recommendation
- Clear invest / pass decision with conviction level
- Recommended terms (check size, valuation, board seat)
- Key diligence items to complete before closing
- What would change your mind (upside triggers and downside triggers)
Common Mistakes to Avoid
- No clear recommendation — Don't hedge. Partners want to see conviction.
- All positive, no risks — Every company has risks. Acknowledging them shows judgment.
- Generic market analysis — "Large addressable market" is meaningless. Size it specifically.
- No competitive analysis — Never say "no competitors." There are always alternatives.
- Too long — 3–5 pages max. Conciseness is a signal of clarity of thought.
- Missing financial analysis — Even at seed stage, show unit economics thinking.
Live Case Study Tips
If it's a live (30–60 minute) exercise:
- First 5 minutes: Skim the materials. Identify the 3 most important questions.
- Next 15 minutes: Build your thesis. What's the bull case? What's the bear case?
- Next 5 minutes: Structure your recommendation. Invest or pass? Why?
- Present: Lead with your recommendation. Then support it with 3 reasons. Acknowledge 2 key risks. End with what you'd want to diligence further.
Practice Framework
The best way to prepare is to write 2–3 real memos before your interview. Pick companies you genuinely find interesting — your enthusiasm will come through.
- Pick a company in the fund's stage and sector focus
- Research it for 2–3 hours (company website, press, Crunchbase, LinkedIn)
- Write a 3-page memo following the structure above
- Time yourself — you should be able to write a solid memo in 4–6 hours
- Have someone in VC or finance review it and give feedback