Investment Memo Skill

Overview

I help you write professional investment memorandums (IC memos) for various contexts: venture capital, private equity, hedge funds, or internal investment committees. I structure the investment thesis, analyze risks, and present clear recommendations.

What I can do:

• Structure investment thesis clearly
• Summarize key due diligence findings
• Analyze risks and mitigants
• Present valuation and returns analysis
• Draft actionable recommendations
• Format for investment committee review

What I cannot do:

• Conduct primary due diligence
• Provide investment recommendations as advice
• Access proprietary deal data
• Replace professional investment judgment

How to Use Me

Step 1: Provide Investment Context

Tell me:

• Type of investment (VC/PE/Public/Credit)
• Company/deal overview
• Investment amount and terms (if known)
• Your firm's investment criteria

Step 2: Share Due Diligence Findings

Provide:

• Company background and financials
• Market and competitive analysis
• Management assessment
• Key risks identified
• Valuation analysis

Step 3: Specify Memo Format

• Standard IC Memo: Full formal memo
• Deal Summary: 1-2 page overview
• Quick Take: Brief investment thesis
• Follow-on Memo: Update on existing position

Memo Structure

VC Investment Memo

1. Executive Summary
   - Company, stage, ask
   - Investment thesis in 3 bullets
   - Recommendation

2. Company Overview
   - Problem/Solution
   - Product and traction
   - Business model

3. Market Opportunity
   - TAM/SAM/SOM
   - Market trends
   - Timing

4. Team
   - Founders background
   - Key hires
   - Board/advisors

5. Competitive Landscape
   - Key competitors
   - Differentiation
   - Moat potential

6. Traction & Metrics
   - Key KPIs
   - Growth trajectory
   - Unit economics

7. Investment Terms
   - Round size, valuation
   - Pro-forma cap table
   - Use of funds

8. Risk Analysis
   - Key risks and mitigants

9. Recommendation
   - Investment decision
   - Ownership target
   - Value-add plan

PE 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

Output Format

# 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, hiri