Investment Memorandum Templates

Use our proven IM templates (known as "information memorandum" or investment memorandum") to hook investors on your compelling business idea. We've created these templates based on a decade of experience in capital raising, and analysis of 100 investment decks.

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Investment Memorandum Templates

Welcome to our comprehensive collection of investment memo templates, designed to help you effectively communicate your business potential to venture capital firms and other potential investors. Our investment memo template guides you towards creating clear, concise, and compelling investment materials that resonate with investors. Whether you are in the SaaS, eCommerce, or tech-enabled services sector, our templates provide a thorough framework to present your investment thesis, market analysis, and financial projections.

These decks have been made by capital raising experts synthesising over 100 company decks to find the perfect combination of slides to sell your idea.

SaaS Investment Memorandum Template

Our SaaS Investment Memorandum Template is tailored specifically for Software as a Service companies with recurring subscription revenue models. Most SaaS businesses operate on a subscription model, providing continuous value to customers through cloud-based software solutions. This template includes detailed sections on the following plus much more:

  • Executive Summary: Overview of your SaaS business, value proposition, and target market.
  • Business Model: Explanation of your subscription-based revenue model, customer acquisition strategy, and retention rates.
  • Market Analysis: In-depth analysis of the competitive landscape, market size, and trends.
  • Financial Projections: Comprehensive financial projections, including ARR (Annual Recurring Revenue), churn rate, and customer lifetime value.
  • Management Team: Profiles of key personnel and their roles in driving growth and innovation.

eCommerce Investment Memorandum Template

The eCommerce Investment Memorandum Template is designed for businesses that sell products online. This template is also suitable for online marketplace businesses with a clip-the-ticket charging model. This template helps you highlight the unique aspects of your eCommerce business, including your product offerings, market potential, and growth strategies. These are just some of the slides and sections:

  • Company Overview: Detailed description of your eCommerce or marketplace business, including its history and evolution.
  • Products and Services: Breakdown of your product categories, unique selling points, and customer base.
  • Market Opportunity: Analysis of current market trends, target market, and competitive positioning.
  • Key Performance Metrics: Metrics such as conversion rates, average order value, and customer acquisition cost.
  • Future Growth: Strategies for scaling your eCommerce business, expanding into new markets, and enhancing customer experience.

Tech-Enabled Services Investment Memorandum Template

Our Tech-Enabled Services Investment Memorandum Template caters to companies that leverage technology to deliver innovative services. This template is ideal for businesses in sectors such as fintech, health tech, and edtech. This template includes slides for a subscription revenue model, or transactional revenue model, offering ultimate flexibility to founders of these types of businesses. The templates offers these sections and many more:

  • Business Segments: Overview of the different services your company offers and how technology enhances their delivery.
  • Market Overview: Analysis of the market landscape, including key trends and potential growth areas.
  • Competitive Landscape: Comparison of your business against competitors, highlighting your unique advantages.
  • Investment Thesis: Explanation of why your business represents a compelling investment opportunity.
  • Financial Projections: Detailed financial projections, including revenue streams, operating expenses, and profitability forecasts.

When are Investment Memos used in the Investment Process?

At The Funding Guide, we don't recommend you start by building an IM - we think you should start by creating pitch decks. A pitch deck is about 12-15 slides and tells your story in a really succinct way.

A confidential information memorandum is much larger and should be used at later stages of an investment process, when investors expect something more detailed and comprehensive than a pitch deck. Your IM should effectively communicate how your business matches an investor's investment criteria - as well as every other aspect of your business and it's operations. It should contain a broad range of information on the company's history, its business model, its regulatory environment and current track record.

We recommend preparing an IM after the first pitch meeting - once you have secured a subsequent meeting. An IM should be given only to investors who are showing interest in entering into an investment process with you and with people with which you have an established non-disclosure agreement in place.

Note also that it is essential to be truthful in an IM about every aspect of your business. The representations you make in your IM will be reviewed during further due diligence and the investor will test your disclosures against extensive information provided at later stages of the process.

Investment Memorandum FAQs

How do you write an investment memorandum with market analysis?

Writing an investment memorandum involves providing a comprehensive overview of your business to potential investors. Here’s a step-by-step guide:

  1. Executive Summary: Start with a high-level summary of your business, including your value proposition, target market, and key financials. An investment memorandum is sometimes referred to as a 'private placement memorandum' and provides a comprehensive overview of the company.
  2. Company Overview: Detail your company’s history, business model, and key milestones.
  3. Market Analysis: Conduct a thorough analysis of the market size, trends, and competitive landscape.
  4. Financial Projections: Provide detailed financial forecasts, including revenue, expenses, and profitability.
  5. Management Team: Highlight the experience and qualifications of your key personnel.
  6. Investment Thesis: Explain why your business is a good investment opportunity, including potential returns and exit strategies.
  7. Risk Factors: Identify potential risks and how you plan to mitigate them.
  8. Appendices: Include any additional resources or detailed information that supports your memorandum.
What is an IM document?

An IM (Information Memorandum) document is a detailed report that provides prospective investors with all the necessary information about a company and its investment opportunity. It includes sections on the company’s history, business model, market analysis, financial projections, and management team. The purpose of an IM is to help potential investors make informed investment decisions.
What is an investment memo for venture capital firms?

An investment memo VC (Venture Capital) is a document prepared by venture capitalists that outlines the key aspects of a potential investment. It typically includes an investment thesis, market analysis, competitive landscape, financial projections, and an evaluation of the management team. This memo helps the investment committee and other stakeholders understand the investment opportunity and make informed decisions
What is a good investment thesis?

A good investment memo is clear, concise, and comprehensive. It should effectively communicate the investment opportunity, provide thorough analysis, and highlight the key factors that make the business a compelling investment. Key elements include:

  • Executive Summary: A clear and concise overview.
  • Investment Thesis: Strong rationale for the investment.
  • Market Analysis: Thorough understanding of the market and competitive landscape.
  • Financial Projections: Realistic and detailed financial forecasts.
  • Management Team: Profiles of key personnel demonstrating their expertise.
  • Risks and Mitigations: Identification of potential risks and strategies to mitigate them.
What is the difference between a pitch deck and an investment memo?

A pitch deck and an investment memo serve different purposes in the fundraising process:

  • Pitch Deck: A visual presentation used to pitch the business to investors, typically during meetings. It focuses on key points such as the business model, market opportunity, and financials in a concise and engaging manner.
  • Investment Memo: A detailed written document that provides a comprehensive overview of the business, including in-depth analysis and supporting data. It is used for detailed due diligence and is often reviewed by the investment committee.

By using our expertly crafted Investment Memorandum Templates, you can effectively communicate your business's potential to current and potential investors, lending credibility to your investment opportunity and helping you raise the capital needed to achieve your growth goals.