How to Prepare an Online Data Room for Investors

A data room is a digital platform that lets startups upload important documents to ensure due diligence prior to a funding round, or an M&A deal. It typically, this is the company’s financial projections and detailed IP ownership documents. This information is available to potential investors, who can use it to make informed decisions when investing in a startup.

When preparing an investor information room, founders may choose to include the following details:

Pitch Decks or Whitepaper Founders are able to upload their pitch decks and whitepapers that explain the way their product or service solves complex problems or markets in a concise manner and is profitable. Adding this document helps to build trust and demonstrate the company’s accountability to investors.

Projections: Founders may include both historical and projected financial statements. They should also include the assumptions, sources and logic behind the projections. This will streamline the due diligence process and help investors comprehend the company’s projected financial performance and growth prospects.

People-Related Documents: Founders may include resumes of key team players and any documents related to hiring. Founders may also opt to include their go to market and growth strategy.

Investor Updates During the fundraising process and https://dataspacelab.net/ due diligence process, founders are able to include a series of updates for investors to the VDR. This keeps investors informed about the progress of the business and shows them that the company is committed to making the most of their money.