Before they commit to a new investment, which is materialized by signing a term sheet, VC partners need to get approval from their Investment Committee (IC).
The IC is generally comprised of all the VC firm’s partners, with sometimes independent experts and representatives of large LPs.
The objective of the meeting is to debate the merits of the investment proposed by the deal team.
A short memo is sent in advance to IC members, called the “IC Deck” or the “IC Memo”.
Several IC Memos have become public over the last few years.
YouTube memo by Sequoia Capital
Spotify memo by Creandum
“The 9 Components of Our Deal Memo” by Point Nine Capital
You can download them by clicking on the link below.
This is a rare glimpse into the arcane of VC firm decision-making.
What do you think of these memos? How do they differ between firms? What is the most important element in these documents? Do you think there is anything missing? Let us know in the Comment section below.