memo
How to write a VC deal memo
A practical structure for turning startup evidence into a clear investment recommendation.
Deal memo guide
Write a deal memo someone can act on
A useful deal memo turns an interesting company into a clear investment question. It should help a reader understand what the company does, why it matters now, what evidence supports the opportunity, and what still needs to be checked.
Start with the decision
Write for the person deciding whether to spend more time on the company. State the company, the round, and the decision you want the reader to consider. Keep the opening short enough to scan.
Explain the company plainly
Cover the customer, the problem, the product, and the reason the approach is different. Prefer specific facts and direct sources over broad claims. If something is unknown, label it as unknown rather than filling the gap.
Show the evidence
Include the strongest available signals: customer behavior, revenue or usage, founder insight, market timing, technical advantage, distribution, and relevant comparisons. Link each important claim to its original source where possible.
Name the risks
A credible memo makes uncertainty visible. Separate facts from interpretation and list the questions that would change your view. Common areas include market size, competition, product readiness, regulation, financing needs, and the team's ability to execute.
Finish with a next step
End with a clear recommendation: pass, keep watching, request more information, make an introduction, or begin deeper diligence. Add the owner and next action so the memo remains useful after the first read.
A practical outline
- Company and round
- One-sentence summary
- Customer problem
- Product and differentiation
- Market and timing
- Team
- Evidence and traction
- Risks and open questions
- Sources
- Recommendation and next action
The goal is not to sound certain. The goal is to make your judgment understandable, evidence-backed, and easy to revisit.
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