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 extensive IP ownership documents. This information is made available to potential investors, who can use it to make informed decisions when investing in a start-up.

When preparing an investor data room, founders can choose to include the following information:

Whitepapers or Pitch Decks Founders may upload their pitch decks and whitepapers that explain how their product/service addresses complex problems or markets clearly and is profitable. The addition of this document can help build https://dataspacelab.net/ trust and demonstrate that they are accountable to investors.

Projections: Founders may include both historical and projected financial statements, including the assumptions, sources and reasoning behind the projections. This will simplify the due diligence process and help investors comprehend the company’s financial forecasts and growth prospects.

People-Related Documents: Founders may include resumes of key team players, as well as any employee stock agreement or documentation related hiring. The founders could also include their growth strategy and go-to market strategy.

Investor Updates: Throughout the fundraising process and due diligence process, founders can include a series updates to the VDR. This keeps investors updated on the developments of the business and demonstrates to them that the company is committed to making the most of their investment.