Investment Memo Example: A Complete Sample IC Memo (Annotated)

Oct 6

Templates tell you which sections an investment memo needs. An example shows what good looks like inside each section. Below is a complete, annotated sample investment committee memo for a fictional growth equity deal, followed by notes on why each section works and how to adapt it for private equity buyouts and venture capital.

The company, figures and fund in this example are invented for illustration. For the blank structure, use our investment memo template.

Sample investment memo: Northwind Ledger (fictional)

1. Recommendation

We recommend investing $40M for a 22% minority stake in Northwind Ledger, a B2B accounts payable automation software company, as part of a $55M Series C. Three reasons: net revenue retention of 121% over the last eight quarters, a sales motion that is now repeatable in the mid-market, and gross margin of 78% with room to expand. Main risk: concentration in two ERP integrations that account for 64% of new customers.

Why it works: the decision, amount, stake, reasons and biggest risk are all in the first paragraph.

2. Company overview

Founded in 2019, 210 employees, $31M ARR (source: management accounts, June 2026), 1,450 customers, headquartered in Chicago. Sells annual subscriptions priced per invoice volume.

Why it works: short, factual, every figure sourced.

3. Investment thesis

Net revenue retention stays above 115% as customers add entities and invoice volume (supported by cohort data, data room file 4.2).
Mid-market sales efficiency holds as the team doubles (payback of 17 months today, target under 20).
Gross margin reaches 80% by 2028 as payment revenue grows.

Why it works: each statement is testable and tied to evidence, and each can be proven wrong.

4. Market and competition

Bottom-up market: roughly 180,000 US companies with 100 to 2,000 employees, at an average contract value of $21,000, gives a $3.8B serviceable market. Competitors include larger suites that bundle AP with expense management and point solutions focused on enterprise. Northwind wins on ERP integration depth and implementation time (median 19 days).

5. Business model and unit economics

ARR growth of 58% year over year, CAC payback of 17 months, logo churn of 9% a year concentrated in customers under 50 employees, and gross margin of 78%.

6. Financial performance

Revenue grew from $12M (2024) to $19M (2025), with $27M forecast for 2026. EBITDA margin of minus 18%, improving 9 points year over year. Cash runway of 26 months after the round.

7. Scenarios

Base case: 45% ARR growth in 2027, NRR 118%, exit at 8x ARR in 2030: 3.1x MOIC, 29% IRR.
Upside: payments adoption accelerates, NRR 125%: 4.6x MOIC.
Downside: one key ERP partner launches a competing module, growth halves: 1.2x MOIC.

Why it works: the drivers of the difference between cases are explicit, and the downside answers the question the committee will ask.

8. Key risks and mitigants

ERP concentration: mitigated by two new integrations in the 2027 roadmap and a board seat to track delivery.
Small-customer churn: pricing floor introduced in Q2 2026; monitor cohort data quarterly.
Payments regulation: covered by legal diligence; no material findings.

9. Diligence findings and open questions

Customer calls (14) confirmed implementation speed as the main purchase driver. Quality of earnings adjusted ARR down 3% for one-off services revenue. Open question: pricing power at renewal for customers above 1,000 employees.

10. Terms and next steps

Series C preferred, 1x non-participating preference, one board seat, standard protective provisions. Request: approval to sign the term sheet and complete confirmatory legal diligence.

How to adapt this example

Private equity buyout: expand historical financials, quality of earnings, debt structure and the value creation plan; the downside case and covenant headroom get the most scrutiny.
Venture capital: shorten the financial sections and expand team, market and product evidence. See our venture capital investment memo guide.
Credit: replace return scenarios with downside recovery and covenant analysis.

What makes a strong investment memo example

The recommendation and biggest risk are on page one.
Every number has a visible source.
Memo figures match the current model.
The thesis is written as testable statements, not adjectives.
Risks come with mitigants and diligence findings.

Writing memos like this faster with AI

The slowest part of producing a memo like the one above is not writing; it is gathering, sourcing and reconciling every figure. BPN Memo Writer drafts the memo in your firm's template from the data room and the live model, with each statement linked to its source. Case Builder generates the scenarios in section 7 from your own spreadsheet, and Evidence Mapper ties each assumption to the documents behind it.

Investment memo example: FAQ

Where can I find real investment memo examples?

Some venture firms have published historical memos, and many funds share redacted versions in training material. Because real IC memos are confidential, annotated samples like the one above are the most common way to learn the format.

How long should an investment memo be?

Venture memos often run 3 to 8 pages; private equity IC memos 10 to 30 pages plus appendices. The first page matters most.

What is the difference between an investment memo and a pitch deck?

A pitch deck is written by the company to sell the deal. An investment memo is written by the investor to test it, including the risks and the reasons not to invest.

Ilyas Nassiri