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Preliminary Investment Memorandum Template for Singapore

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Key Requirements PROMPT example:

Preliminary Investment Memorandum

"Need a Preliminary Investment Memorandum for my Singapore-based fintech startup seeking Series A funding of $10M, with particular emphasis on our AI-driven payment solutions and regional expansion plans for Q2 2025."

What is a Preliminary Investment Memorandum?

The Preliminary Investment Memorandum is a crucial document in Singapore's investment landscape, typically used during the early stages of fundraising activities. It serves as a detailed presentation of an investment opportunity, providing potential investors with essential information about the business, market opportunity, and proposed investment terms. Under Singapore law, this document must comply with specific regulatory requirements, particularly those set by the Monetary Authority of Singapore and the Securities and Futures Act. While not as formal as a final prospectus, the Preliminary Investment Memorandum must still maintain accuracy and completeness in its disclosures to avoid potential liability under Singapore's securities laws.

What sections should be included in a Preliminary Investment Memorandum?

1. Executive Summary: Overview of the investment opportunity and key terms

2. Company Overview: Background, business model, and corporate structure

3. Investment Highlights: Key value propositions and growth opportunities

4. Market Analysis: Industry overview, competitive landscape, and market opportunity

5. Financial Information: Historical financials, projections, and key metrics

6. Risk Factors: Detailed analysis of business, market, and investment risks

7. Investment Terms: Proposed structure, valuation, and key terms

What sections are optional to include in a Preliminary Investment Memorandum?

1. Management Team: Key personnel backgrounds and experience - include when emphasizing leadership capabilities is crucial

2. Use of Proceeds: Detailed breakdown of fund allocation - include when raising specific amounts for defined purposes

3. Technical Overview: Detailed product or technology information - include for technology-focused companies

4. Exit Strategy: Potential liquidity events and timeline - include when discussing specific exit opportunities

What schedules should be included in a Preliminary Investment Memorandum?

1. Financial Statements: Detailed historical financials and projections

2. Cap Table: Current and pro-forma ownership structure

3. Product Information: Detailed product specifications or service offerings

4. Market Research Data: Supporting market analysis and statistics

5. Legal Documentation: Key contracts, licenses, and permits

6. Term Sheet: Summary of key investment terms

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions













































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Industries

Securities and Futures Act (SFA): Primary legislation governing securities offerings, trading, and markets in Singapore. Includes disclosure requirements, trading regulations, and defines what constitutes a securities offering.

Companies Act: Core legislation governing corporate entities, covering shareholder rights, corporate governance, share issuance regulations, and basic corporate structure requirements.

MAS Guidelines: Regulatory framework issued by Monetary Authority of Singapore covering investment products, licensing requirements, prospectus requirements and exemptions, and securities offering guidelines.

Financial Advisers Act: Legislation governing financial advisory services, including licensing requirements for advisers and disclosure obligations for investment recommendations.

Personal Data Protection Act (PDPA): Law governing the collection, use, and disclosure of personal data, crucial for handling investor information and maintaining privacy standards.

AML/CFT Regulations: Anti-Money Laundering and Countering the Financing of Terrorism regulations, covering due diligence requirements, reporting obligations, and compliance standards.

Code of Corporate Governance: Guidelines establishing principles and best practices for corporate governance, including board responsibilities and risk management requirements.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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