A virtual data room is a key aspect of fundraising for a variety of startups. It lets companies share important documents for due diligence with investors without having to send numerous confidential documents. It’s crucial for startups to be aware of what they should include in their investor data rooms so that they don’t waste valuable time by including unnecessary details.
Investors are likely to look over your pitch deck. They will also want access to the most recent financial data you have (historical and projected). Investors will want to examine your business model in depth and will want to look over your cash flow statements, investment case studies, discounted cash flow models, and discounted cash flow analysis. They’ll likely also want to look over your monetization plan and valuation calculation.
In addition to the basic financials, they’ll need to look over your IP information, including trademarks, patent filings and other IP assets that are relevant to your business. They will also want to look up any letters of recommendation from customers or employees. They will also want to review any agreements you may have with current customers or investors.
Once they have reviewed this information, you’ll need to track who has accessed each of these documents. This is an essential aspect of any investor data rooms because it will enable you to take the appropriate actions when there are issues with an individual’s use or disclosure of your company information. A reliable investment banking VDR will provide you with an overview of this activity and offer options to restrict or revoke access to particular documents if necessary.
