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In general the advice participants got was:
- add fund modeling - "If we invest $x at a $y valuation, assuming % dilution, a $z exit will return our fund 1x." Then, work backwards to see if revenue projections, market size, and comparable acquisitions/IPOs support that type of exit. The Simple Exit Calculator might help.
- add clear, quantitative investment milestones - which would cause a next-round investor to be tempted to invest, assuming your deal hits those metrics.
- weave your evaluation through the memo - don't only answer the questions - evaluate the answer you've provided, identifying strengths and weaknesses of the deal as you write the memo.
- be critical - any deal memo should not be overwhelmingly and completely positive, it should also include critical analysis of weaknesses or areas for improvement for the deal at hand.
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