Investment Memo Template https://headstartventures.notion.site/headstartventures...

Investment Memo
Template
Free Template by Niklas Jansen – sign up for my newsletter.

The Dos and Don'ts For Writing Strong Memos

Strictly Confidential

[One sentence elevator pitch: What’s special about this

company? Analogies are great for helping readers understand
the opportunity quickly, e.g. the company builds X for Y]

Quick Access

  Overview   Competition

  Investment Highlights   Team

  Problem and   Major Risks

Opportunity   Financing Round
  Solution   Deep Dives
  Market   Additional Resources
  Traction

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Overview

Investment Highlights

Here is why we are excited about the company:

• Note: Min. 3 highlights, max. 5 highlights

1. Highlight #1

2. Highlight #2

3. Highlight #3

4. Highlight #4

5. Highlight #5

Problem and Opportunity

• Describe the problem: Which problem is the company solving?

◦ Note: Make it relevant. Why does the problem matter? Why

should the reader care?

• The opportunity: That’s the opportunity for the company?

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Solution

• Simple description of the product: What are the core features

that make the product special (don’t mention generic features)?

• Product Vision and roadmap: What will the product be in the

next 6/18 months? Why makes this product better than anything
else in the market?

Market

• Description of target market: Which are the potential customer

segments?

◦ Note: Be as specific as possible and don’t generalize too much

(e.g. every person with a smartphone or every SMB in
Europe).

• Total Addressable Market (TAM): Estimate the market size

(bottom up and top-down).

◦ Note: It’s ok to rely on the calculations of the company here

(just mention them as source). If available, enrich with own
analysis and sources.

• Market Growth: What’s the annual growth rate of the market?

• Why Now: What are the big tailwinds for the business (e.g., market
dynamics, new consumer behaviors, technological breakthroughs),
and how it will evolve in the upcoming years?

Traction

• Business metrics: Show relevant month-over-month numbers

from launch to present.

◦ Examples:

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▪ Marketplace: GMV, net revenue, average basket size,

margins

▪ SaaS/ Consumer Subscription: ARR/MRR, Number of

customers, Churn rates

• Current customer acquisition channels and costs: Show how

is the company acquiring new customers and at what cost.

◦ Examples: SEO, Paid Marketing, Sales, Partnerships, Content

Marketing, Events, etc.

• Sales pipeline (if applicable): Number and size of opportunities

per pipeline stage, total pipeline value per stage, probability-
adjusted pipeline value.

Competition

• Competitive Matrix: Show all relevant competitors and compare

the companies’ product vs. competitors.

◦ Don’t forget: there’s always competition.

• Long-term competitive advantage: How can the company build

a defensible position eventually (e.g., network effects, proprietary
technology, etc.)

Team

• Founders: Describe the founders and their relevant skills and

experiences

• Executives (if applicable): Describe the key executives and their

relevant skills and experiences

• Investors/ Board Members/ Advisors (if applicable): Describe

who supports the management team and their relevant skills and
experiences

• Culture (optional): I, personally, always add 1-2 bullet points

about the company culture and my impression of the team.

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Major Risks

• Outline major risks of the investment and how the company will
mitigate them

◦ Note: Bringing up risks might seem counter-intuitive, but in my

experience, investors appreciate this section. It shows that you,
as the deal lead, really thought through the business and
discussed potential risks with the company.

Financing Round

• Fundraise: How much is the company raising and which

valuation/cap?

• Investors: Who else is investing?

• Syndicate Allocation: How much allocation for the syndicate?

• Use of Proceeds: How will the company use the money?

Deep Dives [Optional]

• Attempt to keep the memo light and, if required, write a deep dive
to provide additional information.

◦ Note: This section is optional. Just delete the section if you

don’t plan to include a deep dive.

Deep Dive #1
Deep Dive #2

Additional Resources [Optional]

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• Link to Pitch Deck

• [Optional] Link to other additional resources (e.g., financial model,

notes from reference calls)

◦ Note: This section is optional. Just delete the section if you

don’t plan to include a deep dive.

Did you find this template useful?

If you want to see some of my memos and learn more about

how to launch your own syndicates, apply for my bootcamp
on starting an Angel Investment Syndicate.

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Experienced entrepreneur and investor.
Co-Founder @Blinkist. Currently, angel
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