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Sep 29, 2025
What is an investment memo? Learn what goes into one, how VCs use it to make decisions, and how AI is reshaping memos.
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An investment memo is a document that investors use within their company to explain why they support or oppose a particular deal.
It sums up the research, market analysis, financial details, and risks, and finishes with a clear recommendation for the investment committee.
Put simply, the memo is where a firm’s decision-making becomes clear.
Let’s take a closer look.
An investment memo, sometimes called an IC memo or deal memo, serves three main purposes:
Note that it’s important not to confuse an investment memo with a pitch deck.
A pitch deck is an external document from the founder meant to persuade, while an investment memo is an internal document for investors to review and evaluate.
One aims to sell the vision, while the other is focused on testing it.
While each firm has its own format, most effective memos include these key sections:
VC memos are different from private equity memos.
Since there is usually less historical data, VC memos focus more on the quality of the team, timing in the market, and growth potential.
PE memos, on the other hand, take a closer look at historical cash flow and operational improvements.
If you are a founder or an aspiring investor, it helps to know how venture capital firms use investment memos.
The memo guides the committee meeting. Using the same format for each deal makes it easier for partners to compare different opportunities.
This way, the committee can spend more time making decisions instead of just collecting information.
For firms that follow a specific thesis, each memo also answers an important question: does this deal match how the firm expects the future to develop?
Konvoy focuses its investment theses on areas like Critical Industries, Deep Tech and Hardware, Developer Tools and Infrastructure, and Gaming and Consumer Platforms.
A strong memo shows how a company fits into one of these focus areas, not just why it looks attractive on its own.
By 2026, AI will be able to make market maps, find similar deals, and quickly summarize data rooms.
Konvoy pointed out in Deal Flow Is Now Table Stakes that soon, every investor will have access to every deal.
The memo helps a firm stand out by showing conviction, unique insights, and risk assessments that data alone cannot provide. It is also where analysts should check AI results rather than fully rely on them.
Analysts should always double-check AI results instead of trusting them completely, as Konvoy discussed in How Sure Is Your AI?
Memos are like diaries. Every couple of years, a company can review them to see what it understood at the time and what it missed.
Some firms share their reasoning publicly. For example, Konvoy’s announcements, like Why We Invested in Diversion, reveal the thinking behind a deal.
You can see how this conviction has shaped Konvoy’s portfolio over time.
Founders who know how to write a strong memo usually raise money more successfully. Before you pitch, try writing the memo an investor might write about your company, and make sure to include the risks.
If you can't explain your competitive advantage or why your company matters right now in just two sentences, investors will pick up on that.
Konvoy's guide on getting venture capital funding explains what investors look for at every stage.
The article 'What Are the Stages of Venture Capital?' shows how the focus of memos changes as companies move from seed stage to growth.
If you want to become an investor, learning to write memos is one of the most valuable skills you can develop.
Konvoy's guide on landing a job in venture capital explains the analytical abilities firms want.
An investment memo is an internal document that venture capitalists use to review a deal and decide if they should invest. It brings together research, market analysis, financial details, risks, and terms in a single document.
By 2026, memos help firms make committee decisions, check if deals fit their investment strategies, and include human judgment in AI-supported processes.
Looking for more insights on venture capital, deep tech, and the industries shaping the future?
Subscribe to Konvoy's weekly newsletter to get analysis from our investment team, sent straight to your inbox.
An investment memo is an internal document that reviews a deal and suggests whether to invest. In 2026, VCs use memos to guide committee decisions, check if a deal matches their thesis, and show the judgment that distinguishes them now that AI makes data easy to access.
Konvoy is a venture capital firm that follows a clear investment thesis. It reviews opportunities based on its published focus areas, including key industries, deep tech and hardware, developer tools and infrastructure, and gaming and consumer platforms.
Early-stage VC memos are usually a few pages long. More complex private equity memos can be over 30 pages, including appendices. The best length is whatever the deal needs, without adding unnecessary details.
Partners and principals on the investment committee read the memo. Some firms also share a refined version with limited partners or co-investors.
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