A virtual investor data room contains all the information prospective financial backers need to assess your company’s funding request, confirm commitment to a deal, and justify their decision front of their superiors. It is impossible to fit all the information into a slide presentation or face-to-face meeting.
A robust investor data room can make your company attractive to investors and make it easier to raise funds. The wrong information or poorly designed data room could make your deal unprofitable. In this article, we’ll explore what you should include in your investor data room and how to structure it to ensure optimal efficiency.
During the due diligence phase, sophisticated investors will request data related to your legal structure such as articles of incorporation, tax information, and more. You might need to provide them information on your company’s contracts with clients and suppliers and intellectual property, market research and many more.
Investors should also see how you’ve communicated with your previous investors. This shows that you take the importance of transparency and communication seriously, which is an essential aspect of establishing trust in the relationship you have with an investor.
You’ll also need to add the bios of your employees www.onlinevdr.com/what-do-i-include-in-an-investor-data-room/ and mention any notable business accomplishments. This is a fantastic opportunity to differentiate yourself from other startups that are seeking investment. But, you must be careful not to share too much information because you don’t want any information that might expose trade secrets of competitors or other sensitive material.