A virtual data room for startups is a powerful tool that can paint an accurate image of a company’s operations to aid acquirers and investors in due diligence valuation, offer and due diligence. The best VDR can speed up the process and reduce delays because of lack of clarity.
When you are in the early stages of fundraising, it’s important to load your startup’s data room as quickly as you are able to. This will allow you to save time could be used to explore other opportunities. It is also important to include key sections which will make the experience for investors as smooth as possible. These key sections typically comprise:
Documents that pertain to the Company Organization
This section contains the most important corporate documents including articles of organization and business certificates, as well as tax information and legal documents. Investors must verify the authenticity of files and the startup’s status as a company prior to making an investment.
Founders should upload pitch decks to their data room even though they are likely to be changed many times before they reach the final pitch deck that will be used when they meet with investors. If possible, it is also a good idea to include a short video presentation of the product.
This could include financial statements and projected ones, as well as the assumptions and sources used to make the projections. Investors need to know the financial position of the company to determine how they can help the company achieve its goals.