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 | |

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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

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?]

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Product [Description of product/service, key features, differentiation]

MARKET OPPORTUNITY

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| | 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]

COMPETITIVE LANDSCAPE

Competitive Position [How the company positions against competitors]

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| | [Comp 1] | $[X]M | | | | [Comp 2] | $[X]M | | |

Sustainable Advantages

[Moat 1]

[Moat 2]

TEAM

|

| | | CEO | | | | | CTO | | |

Management Assessment [Quality of team, gaps, hiring plans]

Board Composition [Current board, proposed board seat]

TRACTION & METRICS

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| | ARR/Revenue | $[X]M | $[X]M | [X]% | | Customers | [X] | [X] | [X]% | | [Key Metric] | [X] | [X] | [X]% |

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| | CAC | $[X] | | | LTV | $[X] | | | LTV/CAC | [X]x |

3x good | | Payback | [X] months | | | Gross Margin | [X]% | |

FINANCIALS

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Cash Position & Runway

Current cash: $[X]M

Monthly burn: $[X]M

Runway: [X] months

INVESTMENT TERMS

Deal Structure | Term | Details | |

|

Key Terms

Liquidation Preference: [X]x [participating/non-participating]

Anti-dilution: [Broad-based weighted average]

Pro-rata Rights: [Yes/No]

[Other key terms]

|

|

| | [Use 1] | $[X]M | | | [Use 2] | $[X]M | | | [Use 3] | $[X]M | |

RETURNS ANALYSIS

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| | 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]

RISK ANALYSIS

|

| | [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]

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 * Tips for Better Results Provide all available data for more complete analysis Specify your fund's criteria (stage, check size, sectors) Include any concerns you want addressed Mention comparable deals for benchmarking Indicate urgency if timeline matters Limitations Cannot conduct primary diligence Analysis based on provided information only Does not replace IC discussion and judgment May not reflect latest market data Not investment advice Built by the Claude Office Skills community. Contributions welcome!

安装

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