How to Prepare an Online Data Room for Investors

A data room is a digital platform that allows startups to upload important documents to ensure due diligence prior to a financing round or an M&A deal. This typically includes the company’s financial projections, as well as specific IP ownership documents. This information is provided to investors who can use it to make informed decisions when investing in a start-up.

When creating an investor data room, founders may choose to include the following details:

Pitch Decks or Whitepaper Founders may upload their pitch decks and whitepapers that outline how their product/service addresses complex problems or markets in a clear way and is profitable. Adding this document will help establish trust and prove the accountability of potential investors.

Projections: Founders might include financial statements from the past and projected. They could also provide the assumptions that are based on sources, as well as the reasoning behind these projections. This can make it easier to complete the due diligence process and help investors better understand a company’s projected financial performance and growth prospects.

People-Related Documents: The founders can include resumes of team members and any employee stock agreements or other documentation related to hiring. Founders may also http://dataspacelab.net/how-the-legal-industry-scrambles-to-handle-project-management/ opt to include their go-to market and growth strategy.

Investor Updates: Throughout the fundraising and due diligence process, founders can include a series updates to the VDR. This helps to keep investors updated on the progress of the business and helps them to see that the company is dedicated to making the most out of the investment.