A data room is a platform that lets startups upload important documents for due diligence prior to a funding round or an M&A deal. Typically, this includes the company’s financial projections as well as extensive IP ownership documents. The information is then available to potential investors and can assist them http://dataspacelab.net/ in making an informed decision about investing in the startup.
When preparing an investor data room, founders can choose to include the following details:
Whitepapers or Pitch Decks: Founders can upload their pitch decks and whitepapers that outline the way their product or service solves the complex problem or market in a clear way and is profitable. This document will help build trust with potential investors and show accountability.
Projections: Founders are able to include both historical and projected financial statements, including the assumptions, sources, and reasoning behind the projections. This can simplify the due diligence process and help investors comprehend the company’s financial forecasts and growth potential.
People-Related Documents for Founders: Founders are able to include the resumes of key team members and any employee stock agreements or other documentation related to hiring. Founders may also include their growth strategy and their 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 informed about the development of the business and shows them that the company is dedicated to making the most of their money.