The memo's purpose is for a partner to present their case to the other partners on the opportunity and why the partnership should invest. The investment memo gives perspective on how the VC thinks the market will evolve, insights they have from portfolio companies, the market size they think is more realistic (compared to what the startup pitch deck mentions), their assessment of the team and their needs, etc. The interactive conversation touched on how diligence typically differs by. If you're learning to make a VC investment memo, don't assume the memos are what you exactly need to do. Enable early stage startups to understand how they will be assessed. What I appreciate about the NextView investment memo is the time-stamp of what went into a decision to invest. The following is based off of the Y Combinator Series A Guide. Internally, the scarcity of tangible business metrics — product usage or revenue multiples for example — can make an investment decision feel daunting. YC suggests sending your memo to investors in advance of a meeting to set the. It can either be presented by strapped or start-up companies to potential investors or the other way around.