What to Include in Your Investor Data Room
A virtual investor data room contains all the information prospective financial investors need to assess your company’s request for funding, confirm their the agreement, and justify their decision in front of their superiors. You can’t fit all of the required data elements into a pitch deck or in-person meeting, and you certainly shouldn’t attempt to do so in the interest of safeguarding sensitive information.
A robust investor dataroom could help your company stand out to investors and help speed up the fundraising process. However, the wrong data or a poorly organized data room could hinder your plan. In this article, we will examine what you should include in the investor’s data room and how it should be organized to ensure maximum efficiency.
During the due diligence stage sophisticated investors can request information about your legal structure and tax information, including articles and more. You may be required to provide them details about your company’s contracts with customers and suppliers including intellectual property, market research, and more.
Investors might also want to know how you communicated with previous investors. This information shows you take https://onlinevdr.com/what-is-financial-reporting/ the importance of transparency and communication seriously. It is a key part of building confidence with investors.
In addition, you’ll need provide your team’s bios and mention any notable accomplishments that are relevant to your business. This is a great opportunity to stand out from other startups that are seeking investment. You should not overshare information since it could expose the trade secrets of a competitor or other sensitive material.