# Investment Memo ## **Company Overview** * What does the company do? Why is this a compelling opportunity? * What is your hypothesis of the future, and how does this opportunity fit within it? **Mission / Vision** * Why was the company formed? * What was the pain point being addressed? * Where did this pain point originate from? ## **Customer** #### **Target Market / Customer** * Who is the company selling to? * What types of firms? * Who within the organization specifically? * Does this person have the authority to guide purchase decisions? #### **Problem / Need** * What problem is being addressed? * How severe is this problem? * How has the problem been validated? ## **Product** #### **Product & Wedge** * Describe the product in detail. * How does this address the problem stated above? #### **Defensibility** * What is defensible? * What is not defensible? * What has to happen in order for defensibility to become real? #### **Go-To-Market** * What is the GTM strategy? * How feasible is it? * What all has to happen in order for this product to become adopted? #### **Monetization** * How does the company plan to make money over time? * What is the pricing model? * Is the pricing model tiered? * How are different tiers categorized? ## Market #### **Why Now / Macro Trends** * What trends support the adoption of this type of technology? * What have been the outcomes of previous teams that have tried to do this in the past? * If they failed, why did they fail? #### **Market Size** * Clearly define the market. * Does a market exist or does it need to be created? * Is this an expanding or contracting market opportunity? * Quantify the total size of the opportunity then work backwards to estimate what percentage of the total market is obtainable. #### **Competition** * Who is the direct and indirect competition? * Who are potential competitors? * How aware are the founding team of their competition? * This should never be left blank. #### **Advantage** * Why is this company better than the rest of the field? * What is their unique advantage? * How sustainable is this advantage? > Competitor Analysis Template: [Link](https://docs.google.com/spreadsheets/u/1/d/1M6qzMAIolWH0PDesEdI-0IOWbFpyjfeHeJEoHOpPU7Y/edit?usp=drivesdk) ## Traction #### **Product** * What has been built and shipped? * What is still in production? * What is the product roadmap and timeline? #### **Metrics** * What quantitative metrics are being tracked? * What progress has been made so far? * The more data points, the better. > Saas Metrics Dashboard: [Link](https://docs.google.com/spreadsheets/d/18zxx7qzhoPzNf0ZB_PKhfUr4lIljY-EVt4I7-p0Bi3c/edit) ## Team #### **Founding Team** * Who is the founding team? * What are their backgrounds? * How did they meet? #### **Core Team** * Who else is on the core team? * What are their different roles? * What are their backgrounds? * Why did they leave their previous roles to join this company? #### **Perspectives** * What is truly unique about the team? * Why are they better than other teams you have passed on? * What are their collective insights towards the problem they are solving? #### **Core Traits** * [ ] Can they build the product? * [ ] Are they leaders you would follow? * [ ] Do they understand the customer? * [ ] Can they ship and sell their vision? * [ ] Do they have tenacity, grit, hustle? * [ ] Do they have self-awareness? * [ ] Do they have unwavering conviction? * [ ] Are they on a mission? ## Fundraise #### **Round Dynamics** * What are the proposed terms for the fundraise (amount seeking, pre/post-money valuation if priced, valuation cap/discount/interest if convertible)? * What are the uses of funds? * How long will this extend runway? * How much has been committed towards the round? * Who has committed to the round? * Did previous investors follow on? #### **Roadmap & Milestones** * What are the business and product milestones? * How will this fundraise yield these milestones? * What is the hiring plan? #### **Waterfall Analysis** > Waterfall Analysis - 1X Liquidation Preference\*\*:\*\* [**Link**](https://docs.google.com/spreadsheets/d/17uV4XElVYsGl36_GR44rFeyj1Pe2Qo8dirN6hW2QQ_Y/edit#gid=1233516235)\*\*\*\* ## Decision Check #### **Basic Questions** * [ ] Is this breakthrough technology? * [ ] Is now the right time to start? * [ ] Are they starting with a big share of a small market? * [ ] Do they have the right team in place? * [ ] Do you have a clear way to distribute the product? * [ ] Is their business and market position defensible? * [ ] Have they identified an opportunity that others cannot see yet? * [ ] Can your team add value to this business? #### **Key Risks** * What are the risks you need to get comfortable with if you are to invest into this opportunity? * Do the risks justify the upside rewards? ## Pitch Notes * What did you like/dislike? * What did the partners think of the opportunity at first glance? * What are concerns coming out of the meeting? * Can answers to these concerns lead to a "yes" from the partners, or are there any dealbreakers?