VC firm Flybridge uses AI to create investment notes, an important part of any diligence. We are making this generator publicly available via our website and GitHub. Flybridge aims to help founders refine their pitches and save investors time on daily tasks.
When Chip Hazard, a longtime startup investor at Flybridge, finds a startup he wants to fund, he writes a multi-page investment memo for his partners, outlining in detail all the risk factors and opportunities for the business. . Now, he uses AI to help create these documents, saving him time.
It’s the latest example of how startups are feeding their dog food. Investors aren’t just funding startups exploring applications of large-scale language models and “agents.” We’re also experimenting with these tools internally to improve the way we source deals, research companies before investing, and track performance.
“If we can free up capacity for more day-to-day operations and have more time to make decisions, that’s a good deal for our business,” Azar said.
This week, Flybridge is rolling out its AI-powered note generation feature to the public, and anyone can use it for free.
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After ChatGPT was released, Hazard made a cheeky bet with his company’s employees. He promised the employee a bottle of wine from his personal collection if he could build an artificial intelligence that would write an investment memo.
Flybridge’s note generator looks like a simple web form. Users upload pitch decks and pitch transcripts, fill in round sizes and ratings, and add links to the founder’s LinkedIn page and company website.
Under the hood, the note generator is built on top of OpenAI’s o1 model, according to self-taught Flybridge associate Daniel Porras Reyes. This model is considered superior to its successor. This is because o1 is designed to give you more time to think before providing an answer, improving the quality of your output.
Screenshot of Flybridge’s investment memo generator. flybridge
Flybridge has used its portfolio company CrewAI to build “agents,” a new set of artificial intelligence tools that can operate autonomously with little to no human supervision. These agents can search the web through Exa, a search engine designed for agents to use, and create content about your company’s competitive landscape and market size.
In just 3 minutes, the memo generator will output a Word document with sections on opportunities, risks, business model, go-to-market strategy, and team. We also suggest a list of follow-up questions for founders.
A sample investment memo created with Flybridge’s investment memo generator demo. flybridge
Hazzard said Flybridge hopes to make the tool publicly available so founders can use the generator to run pitch decks and investment memos before meeting with the company. This allows founders to understand how their pitch will come across and potentially resolve issues in advance.
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Like most generative AI tools, note generators can make bad decisions. Porras Reyes added that this could result in competitors being delisted or incorrect numbers being achieved in financial projections. Still, Hazzard said the product will shave hours off production time. For example, we spend less time writing founder bios and more time thinking about whether the founder has the right characteristics and the best idea.
Hazzard said if note-taking tools were more capable, users might be tempted to “check their decisions at the door.” He continued: “The key is to get it ‘good enough’ so you can actually start applying your judgment.”
Founders and investors can access an open-source investment memo generator on Flybridge’s website or clone the project on GitHub.
