Usually the first section of the memo, explains the basics of the deal and an overview of the company
Things to Include
Valuation
Your Allocation
Who are its current investors
Stage, sector, location
Overview
A quick 1-2 paragraph summary of what the company does and what problem they are trying to solve
Product Summary
Explains what product the startup is selling and what makes the product unique
Market Sizing
This section is a mini deep dive on the sector/market the startup you are working on is targeting.
Be sure to include the current scope/demographics of potential users, the future of the sector, the market spending potential, and leaders in the space.
Team
High level overview of Executive/Founding Team’s bios including past work experience, their domain expertise, their roles at the current startup
Revenue Model
Some startups do not have this in the pre-seed stage so the scale of the revenue model/financials depends on each startup you are talking to
For Early Stage
Might have a few lines on their pricing strategy, how they project users to scale, MoM revenue growth
For Late Stage
Will have to build more advanced financial models detailing revenue projections, growth projections, analysis on valuations and more due to having access to detailed financial history
Traction
This section is the highlight the key process a startup has made
Include key partnerships and LOIs
Results of Beta tests
Short term & long term vision (what is next on the roadmap)
Crucial for readers to understand how this company plans to grow and scale to become a billion dollar business
Competitors
Who are the main players in the space?
This section is crucial as it is important to understand what other companies are in the space and doing research can convince you on if the company you want to invest in is the leader in that space
Highlight direct competitors (usually other startups working on the same idea) and indirect competitors (usually bigger cos like Amazon, Google, etc)
How does [company] fit your fund thesis?
If you work at a fund or have your own fund, all your investments must fit your investment thesis
Why is xyz startup is a great investment and how it fits specifically to your thesis
How To: Write an Investment Memo