The term "memo" generally refers to the "deal memo."
The deal memo is a document or summary written by the lead of a fund or syndicate that provides an overview of the company receiving investment. On AngelList Venture, when you invest in a deal, you'll see the corresponding deal memo written by the lead.
Most deal memos contain the following:
- Overview
- Overview of what the company does / what problem they're trying to solve
- Market Background
- Analysis of the market or sector the company is entering– things like the total addressable market and other trends
- Founding Team
- Background on the founders and why they are uniquely situated to run this company– why the leads believe they're worth investing in, and any unfair advantages or domain expertise they possess
- Business Model
- Overview on how the company plans to generate revenue, where their costs stand (customer acquisition costs, etc)
- Competitive Landscape
- Are there direct competitors? Are there companies that aren't competitors yet, but could be? Is the company building moats that would defend against future competition?
- Risks & Concerns
- What the leads are concerned about with regard to the company or the market– risks that the investors should take into account before investing.