Write 2-3 pages (single spaced). Bullet points are okay.
Pick an early-stage startup (pre-seed, seed, Series A). Company must not be publicly traded. Company can be based outside of the US. You might look for a company that’s hiring, an industry you find interesting, or a technology that you’re passionate about. Potential sources of companies:
https://techcrunch.com/2019/08/19/all-84-startups-from-y-combinators-s19-demo-day-1/ (Links to an external site.)
https://techcrunch.com/2019/08/20/here-are-the-82-startups-that-launched-on-day-2-of-ycs-s19-demo-days/ (Links to an external site.)
(Links to an external site.) (Links to an external site.)Angel.co
Crunchbase
Techcrunch
https://alchemistaccelerator.com/class/ (Links to an external site.)
https://500.co/startups/ (Links to an external site.)
Attend a startup pitch event in LA or Orange County (Links to an external site.)
Write an investment memo that includes:
– Overview/executive summary of the company
– The problem the company is solving
– The company’s solution
– The underlying technology/how their solution works
– Their revenue model
– The market that they’re in, any trends or growth rates that make that market attractive
– Competition in the market and whether the company has a defensible position
– The company’s traction in their market so far
– Risks
– Additional due diligence – what other data could you collect to verify their claims? Investors commonly talk to the startup, do individual research, product testing, customer-user interviews, and extensive founder (backchannel) reference calls. (You do not need to actually collect the data but you should identify potential sources)
– Founders – why will this team be successful?
– Recommendation
Your memo should be written from the perspective of an investor OR someone considering working at the company. It should not be written from the company’s perspective.
You do not need to cover any details around financing or investment amounts.
