A VC or an investor has expressed an interest in your startup and asked for more details. They want to verify what you’ve stated in your pitch and want to see granular details about your business’s model and financials. This is the reason why an investor data room comes in.
The difference between winning or losing an investment deal can be determined by executing the right www.dataroomproducts.com/virtual-data-room-for-businesses/ strategy. Investors are busy and have no time to spend on lengthy processes. You must be ready as soon as a potential investor approaches. The proper information in a room can help both parties save time and show that they are committed to fundraising.
To create a successful investor data room, you should begin by creating an organizational structure for your folders that is clear and well labeled. Include only the documents that investors will need to complete their due diligence. This will be different at each stage of the deal, but generally includes the following:
IP Information (patent filings and trademarks)
Documentation on people (resumes and employee stock agreements and also documentation regarding hiring).
Financial Information (historical and projected), including assumptions, sources and the logic that underlie these projections
Consider adding documentation to prove that your venture is in compliance with national, local and international regulations. This is a great method of proving to investors that your business is in compliance with local laws, national or international standards. Also, think about including documents regarding sustainability over the long term (e.g., a carbon emissions reporting system or other environmental sustainability measures). Using a virtual data room that incorporates data access analytics can help startups to plan ahead of meetings with investor stakeholders. This will lead to better conversations and a greater understanding of the questions that investors are most interested in.