Information Memorandum (IM)

An IM contains a comprehensive breakdown of a business for the purposes of informing potential investors about the opportunity. It is the Private Company equivalent of a Prospectus that are used by Public Companies. However, whereas the contents of a prospectus are regulated, an IM is not.

It is expected to reveal more detail than a pitch deck and is written with more of a ‘marketing style’ but is really most appropriate for a later stage investment where the business metrics are more well-defined.

Here’s a nice summary of an IM from Lawpath and the differences between the different documents from the Financial Writing Company.