Investors typically have a lot of information they want to know. Some of it might be too much for the format of a pitch deck or more granular than what you can share in your short one-pager. It’s essential to have a virtual data room that will be able to manage all your data, no matter its size or the scope. This will ultimately speed due diligence, create trust among investors, and boost your chances of closing the deal.
This includes confidential revenue projections as well as intellectual property ownership documentation for startups that are seeking funding. This enables investors to evaluate and assess the company’s potential for growth and value.
Adding to this list is any other relevant corporate documentation, which can range from the company’s legal structure and governance, to HR agreements and employee agreements. For many companies this is a crucial step to ensure that all investors are given the same treatment.
In addition, investors are interested in the sustainability of the company. That’s why it’s essential http://vdrdata.com/tips-on-getting-the-best-venture-capital-deal-possible for startups to have an action plan for the future which clearly outlines how the business will grow beyond the current stage.
It’s a good idea to provide frequent investor updates via the data room. Investors will feel more involved in the startup as they feel like they’re being a part of. The use of file access analytics is particularly helpful in this regard, as it gives startups a quick glance at who’s viewing which documents.