Investment Memos: Tips, Templates, and How to Write One (2026 Guide).

What is an Investment Memo?

An investment memo is a narrative document used by startup founders to pitch investors, detailing the business model, market opportunity, risks, and financial projections. Unlike a pitch deck, it serves as a standalone artifact to build conviction without a live presentation.

While pitch decks rely on visuals and brevity, investment memos prioritize narrative depth and logic, allowing investors to evaluate the opportunity asynchronously before or after a meeting.

Why Are Investment Memos Important?

Investment memos are vital tools in the fundraising process. They serve multiple purposes and provide significant advantages for both founders and investors:

Building Conviction

Investment memos enable stakeholders to develop strong convictions about an idea or business. By presenting detailed information and a well-structured argument, memos help potential investors understand the merits and potential of the investment.

Global startup funding surged to $425 billion in 2025, representing a 30% year-over-year increase. This momentum has accelerated into early 2026, with Q4 2025 alone recording $113 billion in deployed capital.

However, this capital is highly concentrated: nearly 53% of all 2025 funding ($211B+) went specifically to AI-related companies. For founders outside of this bubble, the bar for raising capital is higher than ever, making a flawless investment memo critical for standing out in a market that now prioritizes 'execution over experimentation'.

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Fostering Relationships

Investment memos can be instrumental in building relationships with investors. Clearly articulating why someone should invest in your startup helps make quick decisions and demonstrates respect for the investor's time and sets the tone for future communications.

Ensuring Alignment

Investment memos create alignment among all stakeholders. For those raising capital, memos keep current and potential investors informed and in sync with your messaging and round status. Within a team, memos ensure everyone is on the same page regarding decisions and project progress, providing a reference point for future discussions.

Related resource: Contributed Capital

Types of Investment Memos

In the context of venture capital, investment memos serve several specific purposes. By understanding these different types of memos, founders can better tailor their documents to meet the expectations and needs of venture capital investors.

• Pre-Investment Memos: Prepared by founders to attract venture capital, these memos outline the business opportunity, market potential, and strategic vision to convince investors to fund their startup.
• Due Diligence Memos: Created by venture capital firms, these documents detail their analysis and findings on a potential investment, including market analysis, competitive landscape, and financial projections.
• Internal Investment Proposals: Used within venture capital firms to present and justify investment opportunities to partners and decision-makers, ensuring everyone is aligned on the potential benefits and risks.
• Post-Investment Memos: These documents summarize the terms of the investment and the expected milestones and performance metrics, serving as a reference for both the investors and the founders.

Who is Reviewing Investment Memos?

Investment memos are reviewed by a variety of audiences, each with their own perspectives and priorities. Understanding who will be reading your memo is crucial to crafting a document that meets their needs and expectations.

To be successful, investment memos need to be clear, concise, and tailored to the specific concerns and interests of these audiences. Providing relevant data, logical arguments, and a compelling narrative will help engage and persuade potential investors.

• Venture Capitalists (VCs): These are the primary audience for investment memos. VCs are looking for compelling business opportunities with strong growth potential. Your memo should clearly articulate the market opportunity, competitive landscape, financial projections, and the unique value proposition of your business.
• Angel Investors: Similar to VCs but often investing at an earlier stage, angel investors seek high-potential startups that align with their investment criteria. The memo should emphasize the innovative aspects of your product or service, early traction, and the founding team's expertise.
• Internal Stakeholders: Within a venture capital firm, partners and analysts will review the memo to evaluate the investment's merits. The memo should provide thorough analysis and data to support the investment thesis, making it easy for internal stakeholders to present and defend the opportunity to the investment committee.
• Corporate Investors: Corporations looking to invest in startups for strategic reasons will review the memo to assess how the startup aligns with their business objectives and strategic goals. Highlighting potential synergies, strategic fit, and long-term benefits is essential for this audience.
• Board Members and Advisors: For companies seeking internal investment or approval for a new project, board members and advisors will review the memo. They will focus on how the investment aligns with the company's overall strategy, potential risks, and expected returns.
• Potential Co-Investors: Other investors who might join the funding round will also review the memo. It's important to present a clear and attractive investment opportunity, demonstrating strong market potential and a well-defined growth strategy.

Pitch Deck vs Investment Memo

Both pitch decks and investment memos are essential tools in the fundraising process, but they serve different purposes and offer unique advantages. Understanding when to use a pitch deck versus an investment memo is key. Pitch decks are ideal for initial pitches and quick overviews, while investment memos are better suited for detailed follow-ups and in-depth evaluations.

When to Send the Memo: Pre-Meeting vs. Post-Meeting

One of the most common questions founders ask is whether to send the memo before getting a meeting or keep it for later. There is no single "right" answer, but there are two distinct strategies:

1. The "Pre-Meeting" Strategy (The Filter)

• What it is: sending the memo ahead of time, often in the booking invite or initial email.
• Why do it: It respects the investor's time. If they read it and still take the meeting, you know they are serious. It creates a higher-quality conversation because you can skip the basics and get straight to strategy.
• Best for: Complex businesses (like DeepTech, BioTech, or heavily regulated industries) where a simple 10-slide pitch deck cannot explain the nuance.

2. The "Post-Meeting" Strategy (The Closer)

• What it is: sending the memo immediately after a successful first call.
• Why do it: The first meeting (usually with a pitch deck) is for selling the vision and checking for chemistry. The memo then follows up with the evidence and logic to answer the harder questions they didn't ask in the room.
• Best for: Standard software or consumer startups where the emotional hook is more important than the technical details.

Summary Rule: If your business is easy to understand, use the memo to close (Post-Meeting). If your business is highly complex, use the memo to educate (Pre-Meeting).

Control Your Story

A pitch deck relies heavily on visuals and bullet points to tell your story quickly, often requiring the founder to provide verbal context during a presentation. This can sometimes lead to misinterpretation if the deck is shared without explanation. In contrast, an investment memo provides a detailed narrative that stands on its own, ensuring that all key points and context are clearly communicated without the need for additional explanation.

Quick Decisions

Pitch decks are designed for quick consumption, allowing investors to rapidly understand the business at a high level. They facilitate fast decision-making, especially in initial meetings. Investment memos, while more detailed, allow investors to thoroughly evaluate the opportunity on their own time. This thoroughness can lead to more informed and confident decisions, albeit at a potentially slower pace than a pitch deck.

Succinct

Pitch decks are inherently succinct, typically consisting of 10-15 slides that highlight the most critical aspects of the business. This brevity is useful for capturing attention and providing a snapshot of the opportunity. Investment memos, while still concise, delve deeper into each aspect of the business, offering comprehensive insights that are crucial for serious consideration and due diligence.

What Should Be Included in an Investment Memo?

• The Purpose: Clearly define the memo's objective—whether you are seeking seed funding, strategic partnerships, or internal project approval.
• The Problem Statement: Articulate the specific market inefficiency or customer pain point your business solves, highlighting why it is a "must-have" rather than a "nice-to-have."
• The Solution: Describe your product or service's unique value proposition and how it specifically addresses the identified problem better than existing alternatives.
• Market Analysis (TAM/SAM/SOM): Provide data-backed sizing of your Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) to demonstrate scale.
• Competitive Landscape: Identify key competitors and your "moat"—the strategic advantages or barriers to entry that protect your position.
• Product Roadmap: Detail your current development stage, key milestones achieved, and how the new capital will accelerate future product features.
• Go-to-Market Strategy: Outline your sales channels, distribution plans, and customer acquisition strategy, including metrics like CAC (Customer Acquisition Cost) and LTV (Lifetime Value).
• Traction & Metrics: Present concrete performance data, such as revenue growth, user retention rates, and engagement statistics, using charts for visual impact.
• The Team: Highlight the qualifications and unique expertise of your founding team and advisors that make you the right people to execute this vision.

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Seed vs. Series A: Tailoring Your Memo

Not all investment memos are created equal. A common mistake founders make is trying to write a Series A memo when they are only at the Seed stage (resulting in a document that feels "heavy" and bureaucratic), or sending a fluffy Seed memo to Series A investors (resulting in instant rejection due to lack of data).

1. The Seed Memo: Selling the "Promise" At the Seed stage, you rarely have enough data to prove your business model works at scale. Your memo should be shorter (2–4 pages) and focus 80% of its energy on:

The Team: Why are you the only people in the world who can solve this?

• The Insight: What secret do you know about this market that others don't?
• The Velocity: Show how fast you are shipping product, even if revenue is low.

2. The Series A Memo: Selling the "Machine" By Series A, investors don't just want a good story; they want evidence that if they put $1 in, they will get $5 out. Your memo should be more detailed (5–10 pages) and shift focus to:

Unit Economics: Deep dives into CAC (Customer Acquisition Cost), LTV (Lifetime Value), and payback periods.

• Retention: Cohort analysis proving that customers stick around.
• The Playbook: A clear explanation of exactly how you will spend the $10M+ to grow (e.g., "We will hire 5 AEs and open the London office").

Tips for Building Your Investment Memo

Creating an effective investment memo requires careful attention to clarity, succinctness, impact, use of visual aids, and crafting a compelling narrative. Here’s how you can achieve these key elements:

Importance of Clarity, Succinctness, Impact, Use of Visual Aids, and Narrative

• Clarity: Ensure your memo is easy to understand. Avoid jargon and complex language. Clear communication helps investors quickly grasp the essentials.
• Succinctness: Be concise. Investors are busy and appreciate memos that get to the point without unnecessary details.
• Impact: Highlight the most compelling aspects of your business. Make a strong case for why investors should care.
• Use of Visual Aids: Visual aids such as charts, graphs, and images can make complex information more digestible and memorable.
• Narrative: Tell a story that engages the reader. A well-crafted narrative can make your memo more persuasive and relatable.

Best Practices

• Be Clear and Concise:
  • Use simple, straightforward language.
  • Avoid unnecessary details that do not add value.
• Support Your Claims with Data:
  • Include relevant data and metrics to back up your claims.
  • Use charts and graphs to present data clearly.
• Tailor the Memo to Your Audience:
  • Understand what your audience cares about and address those points.
  • Highlight aspects of your business that align with their interests and concerns.

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Mistakes to Avoid

• Overloading with Information:
  • Avoid including too much information, which can overwhelm the reader.
  • Focus on the most critical points.
• Ignoring Visual Aids:
  • Don’t neglect the power of visual aids to enhance understanding.
  • Use visuals to break up text and illustrate key points.
• Failing to Address Risks:
  • Be transparent about potential risks and challenges.
  • Show that you have a plan to mitigate these risks.

Using Visual Aids

• Charts and Graphs:
  • Use bar charts, line graphs, and pie charts to present financial data and market analysis.
• Infographics:
  • Create infographics to summarize complex information or processes.
• Product Images or Prototypes:
  • Include images of your product or screenshots of your software to give a tangible sense of what you are offering.

Crafting Your Narrative

• Start with a Compelling Story:
  • Begin with a strong opening that captures the reader’s interest and sets the stage for your business case.
• Highlight Key Milestones and Successes:
  • Showcase significant achievements and milestones that demonstrate your progress and potential.
• Clearly Outline Your Vision for the Future:
  • Paint a clear picture of your long-term vision and how the investment will help achieve it.

Using AI to Draft Your Investment Memo

In 2026, most founders use AI tools to assist with fundraising. However, relying on them to write your entire narrative often leads to generic text that investors immediately spot and discard.

Instead of using AI as a writer, use it as a critic to improve your logic.

1. Identify Weaknesses in Your Argument Investors often reject memos because the "Risks" section feels soft or defensive. If you don't clearly state why your business might fail, investors will assume you are naive. Use this prompt to find holes in your plan before you send it:

• Prompt: "Act as a skeptical Venture Capital investor. I am pasting my investment memo below. Your goal is to pass on this deal. List the top 5 specific reasons why you would NOT invest, focusing on my unit economics and competition. Be harsh and direct."

2. Remove Corporate Jargon AI models often use "corporate speak" words like delve, tapestry, paramount, and landscape. These signal to investors that you didn't write the memo yourself.

• Prompt: "Review the following text for 'AI drift.' Highlight any sentence that sounds generic or overly corporate. Rewrite those sections to sound like a pragmatic founder speaking directly to a peer: short sentences, active verbs, and zero fluff."

3. Extract Data, Don't Create It Never ask AI to "generate market data" as it frequently invents false statistics. Instead, paste your own trusted sources (e.g., a PDF of a 2025 market report) into the chat and ask it to find specific quotes.

• Prompt: "Using ONLY the uploaded market report, extract the three most relevant statistics that support my claim that the market is shifting. Format them as bullet points with page number citations."

Tips for Presenting Your Investment Memo

Delivering a compelling presentation of your investment memo is crucial for persuading potential investors. Here are some tips to improve your presentation delivery:

1. Master Your Vocal Timbre

• Vocal Clarity: Speak clearly and at a moderate pace. Ensure your voice is audible to everyone in the room.
• Tone Variation: Use a dynamic tone to emphasize key points and keep the audience engaged. Avoid a monotone delivery which can be boring.
• Volume Control: Adjust your volume to suit the size of the room and the number of attendees. Ensure you are neither too loud nor too soft.

2. Use Pauses Effectively

• Emphasize Key Points: Pause briefly after making important statements to allow the audience to absorb the information.
• Avoid Filler Words: Use pauses instead of fillers like "um," "uh," or "like." This makes you appear more confident and in control.
• Natural Breaks: Incorporate natural pauses at the end of sentences and between sections to give yourself and the audience a moment to reflect.

3. Incorporate Anecdotes

• Personal Stories: Share relevant personal experiences that illustrate your passion and commitment to the business.
• Customer Stories: Use anecdotes from customers or clients to demonstrate the impact and value of your product or service.
• Investor Success Stories: Mention past successes or case studies of investors who have benefited from similar opportunities.

4. Cast a Vision for the Future

• Future Goals: Clearly articulate your long-term vision and how the investment will help achieve these goals.
• Big Picture: Help investors see the broader impact of their investment, including market transformation and potential returns.
• Inspirational Messaging: Use inspirational language to motivate and excite your audience about the future possibilities.

Investment Memo Examples

Examining successful investment memos can provide valuable insights into what works well and why. These examples highlight the importance of clarity, thoroughness, and strategic foresight in creating an effective investment memo. By following similar principles, you can craft a memo that resonates with investors and effectively communicates your business's potential. Here are two notable examples:

The Y Combinator Investment Memo

Why it works:

• Clear Articulation of Metrics and Growth:
  • The memo clearly presents key metrics and growth statistics, making it easy for investors to understand the business's current performance and potential.
• Addressing Challenges Proactively:
  • It identifies potential challenges and how the company plans to overcome them, showing foresight and preparedness.
• Market Opportunity Excitement:
  • The memo effectively communicates the market opportunity, generating excitement about the potential for success.
• Preemptive Question Handling:
  • It uses insights from previous investor interactions to address common questions and objections upfront, streamlining the evaluation process.

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The YouTube Investment Memo

Why it works:

• Real-Life Example from a Successful Tech Company:
  • The memo provides a real-world example from a proven and successful tech company, lending credibility and relatability.
• Detailed Growth and Future Modeling:
  • It includes thorough growth projections and future models, helping investors understand the long-term potential.
• Facilitates Decision-Making:
  • The memo is structured to simplify the decision-making process for investors, making it easy to share and discuss within the investment firm.
• Concise and Informative:
  • It strikes a balance between being comprehensive and concise, providing all necessary information without overwhelming the reader.

The "Why Now?" Framework: Creating Urgency

The most common reason investors pass on a good idea is poor timing. A strong investment memo doesn't just explain what you are building; it proves why this business must be built today rather than 5 years ago or 5 years from now.

To demonstrate urgency, your memo must identify one of these three Market Catalysts:

• Technological Inflection: A new technology (e.g., LLMs, 6G, Solid State Batteries) has recently made your solution 10x cheaper or faster.
• Regulatory Shift: New laws (e.g., AI safety compliance, Carbon tax credits) have created a mandatory budget for your customers.
• Behavioral Change: A mass shift in user habits (e.g., Remote work, Telehealth adoption) has normalized a behavior that was previously niche.

The "Why Now" Test: Weak vs. Strong Arguments

Get Started With Investment Memo Templates from Visible

Ready to craft your investment memo? To make the process easier, we've compiled a library of the best investment memo templates available. These templates are designed to help you effectively communicate your business's potential and secure the investment you need.

Not sure where to start? Check out the investment memo template from Y Combinator below, or explore other options tailored to different business needs. These templates will guide you in creating a clear, concise, and compelling investment memo that resonates with investors.

Use the YC Memo Template

By leveraging these templates, you can streamline your fundraising efforts and present your business in the best possible light. Get started today and take the first step towards securing your next round of funding.

Related resource:

• Update Your Investors
• Startup Financials

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