Detailed IM (Investment Memorandum)
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An investment memo is a clear and concise articulation of the key components of your company and what the rationale is for investing in it.
Writing one helps clarify your company’s story and pitch. VCs also write investment memos of their own, so doing the work for them is a way to incept your vision of the memo into their brains.
A memo is particularly effective if you can write well.
Use this sample table of contents to guide you in creating the outline of what to include in your detailed investment memo.
Note: You may not need to include all of the sections, and you may want to add different sections of your own. Some sections may only need to be one or two paragraphs, others may end up being one or 2 pages.
Suggested total length: 25-100 pages
Sample Table of Contents
0 DISCLAIMER, WARNINGS and INVESTOR NOTES
1 Investment Highlights
2 Executive Summary
2.1 Management Team
2.2 Industry Overview
2.3 The Problem
2.4 The Solution
2.5 The Opportunity
2.6 Unique Value Proposition
3 Company Description
3.1 Company History
3.2 Previous Financing
3.3 Products and Services
3.4 Product Description and Features
4 Technology
4.1 Technology Platform
4.2 Product Architecture
5 The Market
5.1 Target Customers
5.2 Market Size
5.3 Market Opportunity & Growth
5.4 Customer Acquisition Strategy
6 Business Model
6.1 Revenue Model
6.2 Pricing
6.3 Unit Economics
7 Competition
7.1 Competitor Analysis
7.2 Competitive Advantage
8 Progress & Traction
8.1 Early Validation
8.2 Customer Metrics
9 Team
9.1 Directors
9.2 Advisors
9.3 Key Management
9.4 Team Overview
9.5 Key Future Hires
10 Share Capital Structure
10.1 Current Corporate Structure
10.2 Current Capital Structure
10.3 Proposed Capital Raising
10.4 Capital Structure after the Capital Raising
10.5 Proposed Investment Terms
11 Financial Information
11.1 Current Financial Position
11.2 Balance Sheet
11.3 Profit and Loss Statement
11.4 Financial Projections
11.5 Use of Funds
12 Risk Factors
13 Other Material Information
14 Glossary
15 Appendices
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