Why Your Memo Matters More Than You Think

Your investment memo isn't just documentation—it's your argument. It's how you convince partners to allocate millions of dollars based on your analysis. A weak memo kills good deals. A strong memo builds your reputation as someone with judgment.

Here's the template used by top-performing associates, with guidance on what partners actually want to see in each section.

Section 1: Executive Summary

Lead with the punchline. Partners read dozens of memos—they need to know in 30 seconds whether to keep reading.

• Company: One-line description of what they do
• Ask: Round size, valuation, your proposed check size
• Why now: The single most compelling reason to invest today
• Recommendation: Your clear yes/no/conditional recommendation

Don't bury the lead. If you think this is a strong deal, say so upfront.

Section 2: Company Overview

Cover the basics concisely: founding date, team size, location, product description, business model. Include a screenshot of the product if possible. Partners want to visualise what they're investing in.

Section 3: Market Opportunity

This is where most associates either shine or stumble. Don't just quote a Gartner TAM number. Build a bottom-up market sizing that shows you've actually thought about the opportunity. How many potential customers exist? What's the realistic ACV? What's the serviceable market today vs. in five years?

If you're short on time, run the company through Predict Ventures to get instant benchmarking data on market comparables and historical exits in similar spaces.

Section 4: Team Assessment

Go beyond LinkedIn summaries. What have you learned from reference calls? What's the founder's unique insight? Have they built and scaled before? What's the team's unfair advantage in this specific market?

Section 5: Traction & Metrics

Present the numbers that matter. For SaaS: ARR, growth rate, net retention, CAC/LTV, burn multiple. For marketplaces: GMV, take rate, liquidity metrics. For consumer: DAU/MAU, retention curves, engagement depth.

Always include a chart showing the growth trajectory. Contextualise the numbers—are they good relative to stage and sector?

Section 6: Competitive Landscape

Map the competitive landscape honestly. A 2x2 matrix works well here. Identify direct competitors, adjacent players, and potential entrants. Explain why this company wins—and be specific about defensibility.

Section 7: Investment Risks

This section builds trust. Partners know every deal has risks—they want to see that you've identified them and thought about mitigants. List 3-5 key risks with your assessment of severity and likelihood.

Section 8: Financial Projections & Returns

Model the return scenarios. What does this look like at 1x, 3x, and 10x? What exit multiple and revenue are required for each scenario? Is there a realistic path to returning a meaningful portion of the fund?

Section 9: Deal Terms & Recommendation

Summarise the key terms, any unusual provisions, and your final recommendation. Be direct: "I recommend we invest £X at this valuation because..." or "I recommend we pass because..."

Common Mistakes to Avoid

• Advocacy disguised as analysis — If you only present bull-case arguments, you'll lose credibility
• Missing the "so what" — Every data point needs context and interpretation
• Too long — If your memo is over 5 pages, you haven't distilled your thinking enough
• No clear recommendation — Don't hedge. Take a position.

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