Precursor Ventures skips formal investment memos for pre-seed deals because companies have no product, traction, or financials to analyze. They record real-time thoughts instead, respecting that other firms use memos to organize their thinking.
I've always thought it's both difficult and frankly strange to write long memos about pre seed companies with no product, no traction, no historical financials, really just people and an idea. But I respect and understand that other people's processes are really different. And I've talked to some firms who really feel like, hey, memos help me think, they help me organize my thinking. They clarify like the why that we're doing this investment. You know, while we don't do formal memos, we do record a lot of our in real time thinking.
