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Should founders use memos instead of pitch decks for fundraising? I strongly suggest that founders use memos more (and not always decks). Here's why : Many investors actually prefer reading memos from founders. They give a deeper look into your ideas and plans. But when should you use a memo, and when should you stick with a pitch deck? 1️⃣ First, one is not better than the other → If you need to explain a key concept (i.e. your product), use a deck. → If you need to explain more than 1 key concept (a complicated market & your product), use a memo. The complexity of a concept determines the format. 2️⃣ Memos force you to think When you explain your thinking in writing, it forces you to narrate your logic step by step. You can get away with holes in thinking in a deck—with a memo, it’s impossible. Even if you don’t send the memo, writing it is valuable by itself. 3️⃣ Memos do the hard work for investors By creating a memo, you simplify much of the work for them. All investors need to write internal deal memos to invest in your company. Creating a memo for them simplifies A LOT of that work. 4️⃣ Investment memos are dynamic. You can include links, videos, graphs, photos, and screenshots using tools like Dropbox. Always allow investors to explore further IF they are interested. Let investors "choose their adventure”. 5️⃣ Pitch decks still have value. Use a pitch deck in partner meetings—they’re great in 1-to-many settings. Send the memo ahead of time. Use pitch decks to drive the conversation. 6️⃣ Your memo will live on (WAY beyond the fundraising process) ∞ Decks generally need a voice-over, memos do not. This makes memos super valuable resources for recruiting, onboarding new hires, educating the team, etc. 7️⃣ Memos and decks serve different purposes. Both are valuable. But I’m more and more convinced — writing a memo is insanely powerful. Especially with complex/early markets that are hard to understand. What's your thought on this? . #startups #funding #founders #fund #investors #pitchdeck #funding #fundraising #entrepreneur #entrepreneurship
Spencer Greene
2mo
I've yet to see a memo in seed stage - it's an intriguing idea and if someone wants to send one over I'd be curious to see it. I have seen a handful of "one-pagers," which have been uniformly awful. They looked like what a business broker would circulate trying to sell a laundromat, not suitable for venture at all. I know that's not what you're suggesting, but I hope no one confuses the one with the other.
Sebastian Salek
2mo
“Even if you don’t send the memo, writing it is valuable by itself.” This is the killer line. Another approach I find helpful is using a pen and paper to draw diagrams and annotate them. Really helps to put strategies together when they’re hard to conceptualise in my head.
Sahil S.I completely agree that memos can be a powerful tool for founders during fundraising. In my experience, memos allow for a more comprehensive and detailed explanation of the business, which can be especially helpful for complex ideas. Additionally, memos can serve as a reference point for investors to revisit later on, which can be useful for follow-up meetings or discussions.
Havish Gupta
2mo
What does memos actually looks like?
Tam Tran
2mo
Great advice! It is very clear, effective, and valuable
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