I want to write an investment memo that fits the following format (inside the <FORMAT> tags). This memo will focus on {Company name}, a tool that helps {target customer} {value prop}. ------FORMAT------ Company Name Initial Investment Memo [Month] 202[Year] Proposed investment We are proposing a ${investment size} investment in the Series Round financing of Company Name. The Company meets all requirements for an investment. We met Company Name via {source of deal}. Company Name provides [value prop] [executive summary – core value prop, top 1-3 reasons to believe] Investment thesis [3-5 trends that support this recommendation] Key risks [2+ risks] Technology overview [How does it work?] Market size overview [Bottoms-up TAM with sources; screenshots of deck] Company management [Key teammate bio; repeat] Competitors [Category of competitor; bullet examples of them] Financial Projections and Valuation [Screenshots if any exist] Outcomes analysis [Why they might fail] [What we think is most likely path for them to succeed] [The biggest version of this that we can imagine] References [Link to deck] [Link to financial model] ------/FORMAT------ I want it to fit the style (sentence structure, vocabulary and detail) of the ------SAMPLE------ here: ------SAMPLE------ Proposed Investment We are proposing an investment in a startup named XYZ. XYZ provides high performance integrated software and cloud platforms to support simulations and other compute intensive calculations. The company’s product draws on a diverse set of computer hardware to deliver a capability that maximizes the performance of compute workflows. Ultimately, XYZ has built a platform to bring Big Compute capabilities to the enterprise without the high capital cost generally associated with high performance platforms– a capability that will help drive major new innovations in enterprises across verticals. The company will end this year with ~$1M in revenue. Next year, they have confirmed contracts of ~$3M on top of the recurring ~$1M, and project over $5M of revenue by next year's end. We have secured a $5M allocation in this opportunity. Our Fund 1 will be investing ~$3-4M. The remaining $1-2M is being offered in a sidecar vehicle. The pre-money valuation is currently set at maximum of $200M, with a maximum total raise of $50M, though valuation and round size are still being negotiated. Investment Thesis Critical requirements for enterprise customers: Enterprises across several industries spend millions of dollars acquiring high performance computing systems. XYZ Big Compute platform allows enterprises access to scalable specialty hardware without the capital investment required to access those platforms. Traction with large enterprise customers: XYZ has a broad and deep customer base of over 125 companies across several industries. Industry agnostic: XYZ Big Compute platform has proven to work regardless of industry. The company has focused its sales to industries with a higher and more pressing need for high computing needs, but can seamlessly scale to more verticals. They have not yet engaged with the public sector, which could be a large opportunity for the company. Low touch, quick sales cycle: XYZ current sales employees are able to ramp up to $2M ARR in annual sales within a few months. The average sales cycle is under 3 months. High growth, high margins: XYZ is experiencing a growth rate of 300% every quarter while retaining gross margins of ~80%. Key Risks Small revenue per customer: XYZ currently relies on an increasing customer base for all growth. Their average deal size is $100k. As they grow, XYZ will have to learn to scale each account to continue their growth momentum. Competitive landscape: While XYZ enjoys a low competition market today, it will have to deal with increasing competition from traditional cloud vendors including AWS, Azure, and Google. As cloud vendors face high commoditization in their industry, they will look to adding Big Compute as a differentiation. Rescale will have to learn to navigate this changing environment. Notably, the company has close relationships with Alibaba, Microsoft, and Amazon, all of whom may invest in this round given the aforementioned interests. Technology Overview XYZ simulation solutions are cloud-based, integrated software and hardware platforms for companies to perform scientific and engineering simulations. With an infrastructure network of over 30 advanced global data centers and over 120 simulation applications pre-tested and cloud-enabled, XYZ platforms are the largest and most advanced cloud simulation and high performance computing (“HPC”) environments in the world. XYZ enables researchers and engineers to optimize their workflow on a wide variety of hardware platforms without the capital investment required to acquire those platforms. Supported technologies include: Latest CPUs, including Intel Xeon Haswell and Xeon Phi processors; Latest GPUs, including NVIDIA GRID K520 and Tesla K80; Flexible RAM options with over 1TB RAM per server, unlimited per cluster; 10 GigE and InfiniBand FDR, latencies as low as <2 microseconds; and Solid State Disks (SSD) unlimited capacity, I/O speeds of up to 320 MBps. System managers can easily access and manage, track and control, budget and bill. XYZ administrative portal is designed for CIOs and IT professionals to help them transform their IT system into an agile environment with scalable, secure, and elastic cloud HPC resources, while maintaining full IT control and access. Detailed usage reports are readily available in secure user accounts to allow companies or users to track their usage and spending, and to provision budgets and allocate funds accordingly. Rescale works with each company and user to implement the billing cycle and repayment method that best suits their needs. Key strengths of XYZ Big Compute simulation platform: Eliminates key enterprise pain point: Companies pick hardware to optimize a particular workflow, at the expense of other workflows and the ability to adapt or change workflow mix. XYZ allows switching between hardware based on workflow needs allowing for optimization across workflows. The XYZ platform can review the workflow at a code-level and decide what hardware mix is ideal for that particular compute algorithm. Natively built for the cloud: XYZ simulation platforms are natively built for the cloud and provide end-to-end data encryption, cluster isolation, kernel encryption, and data center security. They comply with the strictest industry security standards, such as ITAR compliance for US export controlled activities and SOC 2, as well as independent external security audits. Intuitive, user-friendly, and customizable workflow: XYZ simulation platforms come with an intuitive, user-friendly, and customizable workflow. Users can run single simulation software or connect multiple solvers, set up large design of experiments, or perform optimization analysis. The platforms' visualization feature allows users to perform remote visualization via a standard Internet connection in the cloud. Interactive and high performance visualization are supported by accelerated 3D-graphics powered by NVIDIA GRID™ and NICE DCV™ Technology. Users can also seamlessly share simulation setup, workflow, and results with colleagues worldwide. Comprehensive file management system: XYZ simulation platforms have comprehensive file management capabilities to allow users to efficiently and securely transfer, organize, and store their simulation input and output files. Fast file upload and download can be performed using the latest data transfer technology through a browser, along with unlimited and on-demand data storage. Market Size Overview XYZ operates in two sub-sectors of the cloud industry: high compute infrastructure and big compute software. High compute infrastructure is a $25B market expected to grow at 36.8% to reach $34.6B by next year . While only a small percentage of that is on the cloud today, the percentage is expected to grow to over 50% on the cloud by 2020 . A Gartner study shows that the market for big compute based analytics is slated to grow to $1.1B at a 22% CAGR by 2019 . Company Management Competitors Their primary competitor, Cycle Computing, was acquired in August this year by Microsoft . Other direct competitors, such as Adaptive Simulations and Cloud Runner, are much smaller and in nascent technology stages. Microsoft’s acquisition of Cycle Computing and investment in similar companies demonstrates the broad need for Big Compute as seen by large cloud providers. ------/SAMPLE------ Ask me questions to get enough details to create the memo. With each question, make brief suggestions for the most logical answer to complete the section.