A virtual investor data room has all the information potential financial backers require to evaluate your company’s request for funding, verify the commitment to a deal and justify their decision front of their superiors. It’s impossible to pack all the data into a presentation or a face-to-face meeting.
A robust investor dataroom could help your company stand out to investors and help speed up the process of fundraising. The wrong information or badly structured data room can derail your deal. In this article, we will discuss what to include in your investor’s data room, and how it should be structured for maximum effectiveness.
During the due diligence phase sophisticated investors could seek information regarding your legal structure such as articles, tax information and more. You may also need to provide them with your company’s client and supplier contracts, intellectual property investor data room information such as market research and more.
Investors might also want to know how you communicated with previous investors. This information shows you take the importance of transparency and communication seriously. It’s a crucial aspect of building trust with investors.
Then, you’ll have to provide the bios of your team members as well as mention any notable accomplishments that relate to your business. This is a fantastic opportunity to differentiate yourself from other startups looking to raise capital. You should not share information in a way that is too public because it could reveal the trade secrets of a competitor or other sensitive material.