drafting-investment-committee-memos

name	drafting-investment-committee-memos
description	Creates VC IC presentation materials with deal thesis, market analysis, team assessment, competitive landscape, and return scenarios. Use when preparing IC memos, presenting investment opportunities, or documenting investment decisions.
tags	["drafting","venture-capital","investment"]
metadata	{"author":"casemark","practice_areas":["Venture Capital","Seed/Series Investing","Startup Ecosystems"],"document_types":["Draft Document"],"skill_modes":["Drafting"]}

Drafting Investment Committee Memos

When To Use

• Preparing a formal IC memo to present a new deal for partner vote
• Documenting the investment thesis for a seed, Series A, or later-stage opportunity
• Creating a standardized write-up for deal pipeline review or weekly IC meetings
• Recording the rationale behind a pass decision for institutional memory

Inputs To Gather

• Company materials: Pitch deck, data room access, financial model or projections, cap table
• Deal terms: Proposed round size, valuation (pre/post), instrument type (SAFE, priced equity, convertible note), pro rata rights, board seat, and any side letter terms
• Market data: TAM/SAM/SOM estimates with sourcing, comparable company benchmarks, relevant industry reports
• Team information: Founder bios, LinkedIn profiles, prior exits or notable experience, key hires and org gaps
• Competitive landscape: Direct and adjacent competitors, differentiation claims, switching costs
• Diligence findings: Customer references, technical diligence notes, legal/IP review status, any red flags surfaced
• Fund context: Current fund deployment pace, portfolio overlap or conflict check, reserve strategy implications

Workflow

1. Confirm memo scope and format

   • Determine whether this is a full IC memo (for vote), a preliminary screening memo, or a deal update on an existing portfolio company
   • Confirm the fund's standard IC memo template or section expectations

2. Draft the deal overview

   • One-paragraph company description: what they do, for whom, and why now
   • Round terms summary table: round size, valuation, lead investor, proposed allocation, instrument type, key terms
   • Indicate the fund's proposed check size and resulting ownership percentage

3. Articulate the investment thesis

   • State 3-5 core thesis points, each as a clear assertion (e.g., "Founder-market fit is exceptionally strong because...")
   • Support each point with specific evidence from diligence, not generic claims
   • Distinguish between validated signals and assumptions that require monitoring post-investment

4. Assess the market opportunity

   • Present TAM/SAM/SOM with methodology and sources — flag any top-down-only estimates with [VERIFY]
   • Identify key market tailwinds and timing catalysts
   • Note regulatory or macro risks that could compress or expand the opportunity [VERIFY: jurisdiction-specific regulatory landscape]

5. Evaluate the team

   • Founder background and relevant domain expertise
   • Key hires in place vs. critical gaps to fill in next 12-18 months
   • Assess founder coachability and reference check themes

6. Map the competitive landscape

   • Position the company against 3-6 direct competitors on key dimensions (pricing, product maturity, distribution, funding)
   • Identify the company's durable competitive advantage or moat thesis
   • Flag any well-funded incumbents or adjacent threats

7. Model return scenarios

   • Build base, upside, and downside cases with explicit assumptions for each
   • Show entry ownership, expected dilution through exit, and implied MOIC/IRR for each scenario
   • State assumed exit multiples and comparable exit transactions — mark forward-looking estimates with [VERIFY]

8. Identify key risks and mitigants

   • List the top 3-5 risks in order of severity (e.g., concentration risk, regulatory, technical, go-to-market)

Output

The IC memo should follow this structure:

• Header: Company name, round, date, deal lead, memo author
• Executive Summary: 3-5 sentence overview covering what, why, and at what terms
• Deal Terms Table: Round size, valuation, instrument, allocation, ownership, key provisions
• Investment Thesis: Numbered thesis points with supporting evidence
• Market Analysis: TAM/SAM/SOM, dynamics, timing
• Team Assessment: Founders, key hires, gaps, references
• Competitive Landscape: Positioning matrix or comparison table
• Financial Projections & Return Analysis: Revenue trajectory, burn, scenario table with MOIC/IRR
• Key Risks & Mitigants: Risk table with severity and mitigant columns
• Recommendation & Next Steps: Decision and action items

Format financial figures consistently (e.g., "$2.5M ARR" not "2.5 million in annual recurring revenue"). Use tables for terms and comparisons. Keep the full memo to 4-8 pages equivalent.

Quality Checks

• Every thesis point is backed by a specific data point or diligence finding, not a generic assertion
• Valuation analysis references comparable rounds or public comps with named sources
• Return scenarios use internally consistent assumptions (growth rate, dilution, exit multiple align)
• All forward-looking projections and unverified market sizing are marked with [VERIFY]
• Cap table math is correct: check size, price per share, ownership percentage, and dilution all reconcile
• Conflicts check completed: no portfolio company overlap or LP conflict noted (or flagged if present)
• Risks section includes at least one non-obvious risk beyond standard market/execution risk
• Memo tone is analytically balanced — presents the bear case as rigorously as the bull case
• Fund-specific formatting and section requirements are followed