An IC memo (investment committee memo) is the internal document a deal team submits to request approval for an investment, laying out thesis, diligence, and proposed deal terms.

How it works

After initial partner interest and diligence, the sponsoring partner drafts an IC memo — typically 5 to 15 pages plus appendices. Standard sections include company overview, market size, product and traction, team assessment, competitive landscape, financial projections, deal terms, and key risks with mitigants. References may include customer calls, expert interviews, and background checks. The memo goes to investment committee members before a vote meeting. Partners debate, ask follow-ups, and approve, reject, or request more diligence. Approved memos become part of the firm’s institutional record. At larger firms, IC memos follow templates; at smaller shops, the process may be lighter but the function is the same.

Why it matters

• Founders: Your pitch deck, data room, and reference calls feed directly into the memo. Inconsistencies or weak metrics surface here and kill deals even after friendly partner meetings.
• Investors: IC memos enforce discipline, document dissent, and support LP reporting on investment process. Quality memos correlate with fewer post-investment surprises.

Common mistake

Founders assuming a partner’s verbal enthusiasm means IC approval is automatic. Many firms lose deals at IC despite strong sponsor support.

Related ideas

Investment committee, hard circle, diligence process, and partner vote workflows surround IC memos.