Document background
The Preliminary Investment Memorandum is a critical document used in the early stages of fundraising or investment processes. It serves as the primary introduction of an investment opportunity to potential investors, providing them with essential information needed to make an initial assessment. Under English and Welsh law, these documents must comply with the Financial Services and Markets Act 2000 and related regulations, particularly regarding financial promotions and disclosure requirements. The memorandum typically includes detailed company information, market analysis, financial data, and risk factors, while being careful to maintain appropriate disclaimers and risk warnings. It's commonly used before proceeding to more detailed due diligence and final investment documentation.
