investment-memo

1. Executive Summary
2. Investment Thesis
3. Business Overview
4. Industry Analysis
5. Financial Performance
6. Management
7. Transaction Overview
8. Value Creation Plan
9. Financial Projections
10. Returns Analysis
11. Risk Factors
12. Recommendation

# INVESTMENT MEMORANDUM
## [Company Name]
 
**Prepared for**: [Investment Committee / Fund Name]
**Date**: [Date]
**Prepared by**: [Analyst Name]
**Classification**: Confidential
 
---
 
## EXECUTIVE SUMMARY
 
### The Opportunity
[2-3 sentence description of the company and investment opportunity]
 
### Investment Ask
| Metric | Details |
|--------|---------|
| Round | [Series X / LBO / etc.] |
| Amount | $[X]M |
| Pre-money Valuation | $[X]M |
| Our Investment | $[X]M for [X]% |
| Lead/Co-invest | [Lead / Co-invest] |
 
### Investment Thesis
1. **[Thesis Point 1]**: [1-2 sentence explanation]
2. **[Thesis Point 2]**: [1-2 sentence explanation]
3. **[Thesis Point 3]**: [1-2 sentence explanation]
 
### Key Risks
1. [Risk 1]
2. [Risk 2]
3. [Risk 3]
 
### Recommendation
**[INVEST / PASS / MORE DILIGENCE NEEDED]** at $[X]M for [X]% ownership
 
---
 
## 1. COMPANY OVERVIEW
 
### Background
[Company history, founding story, key milestones]
 
### Problem & Solution
**Problem**: [What problem does the company solve?]
**Solution**: [How does the company solve it?]
 
### Business Model
[How the company makes money]
 
| Revenue Stream | Description | % of Revenue |
|----------------|-------------|--------------|
| [Stream 1] | | |
| [Stream 2] | | |
 
### Product
[Description of product/service, key features, differentiation]
 
---
 
## 2. MARKET OPPORTUNITY
 
### Market Size
| Segment | Size | Growth | Notes |
|---------|------|--------|-------|
| TAM | $[X]B | [X]% | |
| SAM | $[X]B | [X]% | |
| SOM | $[X]B | [X]% | |
 
### Market Trends
1. [Trend 1]
2. [Trend 2]
3. [Trend 3]
 
### Why Now?
[Market timing thesis]
 
---
 
## 3. COMPETITIVE LANDSCAPE
 
### Competitive Position
[How the company positions against competitors]
 
### Key Competitors
| Competitor | Funding | Strengths | Weaknesses |
|------------|---------|-----------|------------|
| [Comp 1] | $[X]M | | |
| [Comp 2] | $[X]M | | |
 
### Sustainable Advantages
- [Moat 1]
- [Moat 2]
 
---
 
## 4. TEAM
 
### Founders
| Name | Role | Background | Equity |
|------|------|------------|--------|
| | CEO | | |
| | CTO | | |
 
### Management Assessment
[Quality of team, gaps, hiring plans]
 
### Board Composition
[Current board, proposed board seat]
 
---
 
## 5. TRACTION & METRICS
 
### Key Performance Indicators
| Metric | Current | 12M Ago | Growth |
|--------|---------|---------|--------|
| ARR/Revenue | $[X]M | $[X]M | [X]% |
| Customers | [X] | [X] | [X]% |
| [Key Metric] | [X] | [X] | [X]% |
 
### Unit Economics
| Metric | Value | Benchmark |
|--------|-------|-----------|
| CAC | $[X] | |
| LTV | $[X] | |
| LTV/CAC | [X]x | >3x good |
| Payback | [X] months | |
| Gross Margin | [X]% | |
 
---
 
## 6. FINANCIALS
 
### Historical Performance
| ($M) | Year -2 | Year -1 | Current | Y+1 Proj |
|------|---------|---------|---------|----------|
| Revenue | | | | |
| Gross Profit | | | | |
| EBITDA | | | | |
| Net Income | | | | |
| Cash | | | | |
| Burn Rate | | | | |
 
### Cash Position & Runway
- Current cash: $[X]M
- Monthly burn: $[X]M
- Runway: [X] months
 
---
 
## 7. INVESTMENT TERMS
 
### Deal Structure
| Term | Details |
|------|---------|
| Security | [Preferred / Common / Convertible] |
| Valuation | $[X]M pre / $[X]M post |
| Round Size | $[X]M |
| Our Investment | $[X]M |
| Ownership | [X]% |
| Board Seat | [Yes/No] |
 
### Key Terms
- Liquidation Preference: [X]x [participating/non-participating]
- Anti-dilution: [Broad-based weighted average]
- Pro-rata Rights: [Yes/No]
- [Other key terms]
 
### Cap Table (Pro-forma)
| Shareholder | Pre-round % | Post-round % |
|-------------|-------------|--------------|
| Founders | | |
| Existing Investors | | |
| Option Pool | | |
| This Round | | |
 
### Use of Funds
| Category | Amount | % |
|----------|--------|---|
| [Use 1] | $[X]M | |
| [Use 2] | $[X]M | |
| [Use 3] | $[X]M | |
 
---
 
## 8. RETURNS ANALYSIS
 
### Investment Scenarios
| Scenario | Exit Value | Multiple | IRR | Probability |
|----------|-----------|----------|-----|-------------|
| Base | $[X]M | [X]x | [X]% | [X]% |
| Bull | $[X]M | [X]x | [X]% | [X]% |
| Bear | $[X]M | [X]x | [X]% | [X]% |
 
### Exit Considerations
- Potential acquirers: [List]
- IPO potential: [Assessment]
- Timeline: [X-Y years]
 
---
 
## 9. RISK ANALYSIS
 
### Key Risks and Mitigants
| Risk | Likelihood | Impact | Mitigant |
|------|------------|--------|----------|
| [Risk 1] | H/M/L | H/M/L | |
| [Risk 2] | H/M/L | H/M/L | |
| [Risk 3] | H/M/L | H/M/L | |
 
### Deal-Specific Risks
- [Risk specific to this transaction]
 
---
 
## 10. RECOMMENDATION
 
### Investment Decision
**[INVEST / PASS / CONDITIONAL]**
 
### Rationale
[3-4 sentences summarizing why this is or isn't a good investment]
 
### Proposed Terms
- Investment amount: $[X]M
- Target ownership: [X]%
- Board seat: [Yes/No]
- Key conditions: [If any]
 
### Post-Investment Value Add
1. [How we can help the company]
2. [Strategic introductions]
3. [Operational support]
 
### Next Steps
1. [Action item 1]
2. [Action item 2]
3. [Action item 3]
 
---
 
## APPENDICES
 
### A. Detailed Financial Model
### B. Customer References
### C. Technical Due Diligence
### D. Legal/IP Review
### E. Background Checks
 
---
 
*Prepared by [Fund Name] Investment Team*
*This memorandum is confidential and for internal use only*