An investment memo is a critical thinking tool that documents the 'why' behind every investment decision.
Key components of a VC-ready investment memo include a concise overview of the opportunity, detailing the problem the startup solves and its significance.
The memo should focus on the product or service, highlighting its features and explaining how it offers a better solution than alternatives.
Other important sections of the memo cover the founding team, market size and dynamics, revenue model, traction indicators, competition analysis, risk assessment, and the overall investment thesis.