Investors usually have a lot of information they wish to know. Some of it might be too large to fit into the format of a pitch deck, or it might be more specific than what you could include in a brief one-pager. It is essential to have a virtual data room that is able to organize all your data, no matter its size or extent. This will ultimately help accelerate the due diligence process, build investor confidence, and increase your chances of closing the deal.
This includes confidential revenue projections and intellectual property ownership documents for startups that are seeking funding. Investors can review and assess a company’s growth potential and value.
The list also includes any other corporate documents that are relevant that may include the company’s legal structure and governance to employee agreements and HR documents. For many businesses this is a crucial step to ensure that all investors are given the same treatment.
Many investors are also concerned about the sustainability of the business. Therefore, it’s crucial for startups to develop an action plan that outlines how they can develop beyond their current stage.
It’s also an excellent idea to provide frequent updates from investors through the data room. It makes investors feel that they are part of the team and makes them more likely to remain connected to the company in the future. A file access analytics system is especially helpful in this regard, as it gives startups a quick look at who’s been watching which files.