Do you want to skip the hassle of creating from scratch and immediately proceed to provide details of the investment memo that you provide to your potential investors? Do not worry for we can surely provide you a kick start in your memo creation through our investment memo templates which are available in Illustrator, InDesign, Microsoft Word, Apple Pages, Photoshop, Publisher, and Google Docs file formats. Our premium templates contain investment recommendations through their suggestive content, which is customizable according to your business needs. You can include your company details, audit report, industry analysis, and other important information that your investors must know, thanks to its editable feature. Do not miss this great opportunity! Download our ready-made and print-ready templates today!

What Is an Investment Memo?

An investment memorandum, or simply an investment memo, is a legal document that includes company details, financial statements, management biographies, and a lot more important papers presented to potential investors. It aims to provide a detailed view of an entity's business and financial plan and explain the objectives, risks and rewards, and investment terms that surround a funding round. Typically, the memo will cover the following areas: summary of the target startup’s business and product or service, proposed financing amount, pros or reasons to invest, cons or risks involved, market opportunity, marketing and sales strategy, and operational plan.

How to Create an Investment Memo

investment memo template

Presented below are simple steps on how to create an investment memo that you can easily follow.

1. Establish Your Goals and Objectives

Before anything else, you need to establish your main goals and objectives and clearly mention them in the memo so that your potential investors or clients will know what they need to do to help you get to your goals and objectives so they can also benefit from them.

2. Give the Details of the Deal

The details of the deal must be specifically presented after you provide your goals and objectives. These include the name of the organization, the parties involved in the investment deal, the kind of deal that you are having, the finance or money involved, and many others.

3. Specify the Potential Risks

Before both parties bound themselves in an sample agreement, it is vital that you first present the risks that could possibly occur during the transaction so that the potential investors would have a heads up on the possibility of the risk to happen. This will also prevent disputes and misunderstandings that may happen in the future. There are 9 types of risk that you must disclose. These are as follows: liquidity risk, concentration risk, credit risk, reinvestment risk, inflation risk, horizon risk, longevity risk, foreign investment risk, and market risk, which includes equity risk, interest rate risk, and currency risk.

4. Present the Terms and Conditions

The terms and conditions in an investment memo list the rules and regulations that need to be followed by all parties who are involved in the investment. These include the definition of words and phrases, interpretation of the investment terms, completion matters, investment by investors, waiver of claims, warranties, continuing obligations, restrictions, restrictive covenants, permitted transfers, mandatory transfers, termination of the agreement, general provisions, counterparts, governing law and jurisdiction, and parties and signatures.

5. Review Your Work

Once you have finished presenting the key point above, do not forget to review and proofread your work in case of any mistakes that need to be corrected. Check for any grammatical and typographical errors, and make sure that the terms are easily understandable by the parties involved in the transaction. It is better if you simplify the words and make your statements straight to the point.

Read More