Glossary Term Investment Memorandum Docs: 6 terms

Investment Memorandum

An Investment MemorandumAn Investment Memorandum in a startup is a formal document that provides potential investors with detailed information about the company, its financial health, and the terms of investment. It serves as a comprehensive pitch that outlines risks, returns,…

Investment Proposal

Documents and Work Material for the Forthcoming Investment ProposalDocuments and Work Material for the Forthcoming Investment Proposal in a startup refer to the set of structured reports, presentations, and financial data prepared to attract investors and secure funding. These materials…

Pitch Deck

A Pitch DeckA Pitch Deck in a startup is a visual presentation designed to communicate the company’s business model, market opportunity, and funding needs to investors. It serves as a structured, compelling overview that helps persuade potential investors or stakeholders…

Risk Assessment

Risk AssessmentRisk Assessment in a Startup refers to the process of identifying, analyzing, and mitigating potential threats that could impact the company’s operations, finances, or growth. A strong risk assessment strategy helps startups navigate uncertainties, improve decision-making, and ensure long-term…

Valuation Models

Valuation models are essential tools for estimating the worth of startups, considering factors like revenue potential, market conditions, and future growth. Key methods include the Discounted Cash Flow (DCF) method, which projects future cash flows; the Comparable Market Valuation, which benchmarks against similar companies; and the Venture Capital (VC) method, focusing on expected ROI. Other approaches, like the Berkus Method, assess qualitative factors for early-stage startups, while the Cost-to-Duplicate method values assets based on replication costs. Understanding these models is crucial for founders and investors to secure funding, shape growth strategies, and determine exit opportunities