Fund Structure
Investment Memo
A formal internal document written by a VC analyst or associate summarizing an investment thesis and recommendation for a potential portfolio company.
An investment memo (or investment committee memo) is a written analysis that a VC firm produces before making an investment decision. It documents the opportunity, thesis, risks, and recommendation. Typical investment memo sections: company overview, market opportunity, product and competitive analysis, founder assessment, financial analysis (metrics, model, projections), investment thesis (why this company, why now), risks and mitigants, proposed terms, and a clear recommendation. Investment memos serve multiple purposes: forcing rigorous thinking about the investment, creating a record for learning (did the thesis play out?), and enabling the full investment committee to evaluate the opportunity even if they didn't participate in meetings. Some firms post investment memos publicly post-investment.