Complimentary TEMPLATE: Funding Memo
The Memo Template Used to Evaluate High-Value Transactions
What Is a Memo for Evaluating Companies?
A capital assessment memo is a structured document used by private equity firms, venture firms, and institutional backers to assess potential funding opportunities.
It provides a comprehensive summary of key aspects of a potential backing, including:
Business model analysis
Projected economic outlook
Risk assessment
Expected returns
Evaluation memos serve as decision-making tools for funding committees, ensuring structured analysis and informed capital allocation.
How Evaluation Memos Are Used in Practice
Top firms like Blackstone, KKR, and Sequoia Capital rely on these memos to:
Screen and assess multiple potential transactions
Standardize the decision-making process across teams
Document key assumptions and funding strategies
Ensure accountability for capital decisions
Benchmark post-allocation growth and risk factors
Instead of starting from scratch, download a complimentary copy of my professional-grade Memo Template to structure your analysis like the pros.
Key Sections Included in Our Memo Template
1. Executive Summary
Overview of the company, industry, and funding potential
Key strategies and major economic metrics
Proposed capital allocation and structuring framework
2. Business Overview
Company history and leadership background
Business model breakdown and revenue sources
Competitive positioning and differentiation
3. Market Analysis
Total Addressable Market (TAM) and Serviceable Addressable Market (SAM)
Industry trends, market expansion potential, and competitive landscape
4. Economic Overview & Projections
Historical figures (revenue, EBITDA, capital flow)
Future projections (3-5 year forecast)
Key metrics and capital structure
5. Key Considerations for Backing
Why this company stands out
Key value drivers and growth levers
Exit potential and long-term upside
6. Risk & Mitigation Strategies
Market, operational, and economic risk factors
Regulatory considerations and compliance factors
Risk mitigation strategies and contingency plans
7. Transaction Structuring
Capital allocation, valuation, and ownership percentage
Expected returns (IRR, MOIC) and investor safeguards
Governance rights and agreement protections
8. Exit Strategy
Expected timeline and exit approaches
Valuation methodology for future scenarios
Estimated return analysis based on market conditions
9. Due Diligence Summary
Key findings from economic, operational, and regulatory reviews
Outstanding concerns, warning signs, and required resolutions
10. Conclusion & Recommendation
Final assessment and approval status
Next steps in the capital allocation process
Why This Template Matters
Whether you're:
A PE/VC professional looking to refine your assessment process
An entrepreneur preparing to raise funding
An independent backer seeking a structured approach
A market analyst aiming to break into private equity
This memo template provides the structured framework used by top-tier capital firms managing multi-industry portfolios.
At Sutton Capital, we've been helping individuals from various professional backgrounds successfully transition into private equity and venture capital roles. Our specialized guidance has enabled professionals from capital markets, consulting, technology, healthcare, and other sectors to navigate the unique requirements of PE/VC careers.
Our approach focuses on:
Tailored skill development for PE/VC requirements
Industry-specific knowledge building
Network expansion with key decision-makers
Practical experience through guided projects
Interview preparation with former PE/VC hiring managers
If you want to learn more about how we can help you transition into PE/VC
To Your Growth,
Sutton Capital.