A virtual data room is a key aspect of fundraising for a variety of startups. It lets companies easily share important documents with investors for due diligence without sending them a plethora of confidential files. It’s essential that startups know what recommended you read information they must include in investor data rooms so as to save time.
Investors will likely to be able to view your pitch deck. They’ll also want access to the latest financial data you have (historical and projected). They’ll want to examine your business model thoroughly, so they will want to review cash flow statements, investment case studies, and discounted cash flow analysis models. They’ll also likely to look over your monetization plan and valuation calculations.
In addition to your basic financials, they’ll also want to examine your IP information including trademarks, patent filings and other IP assets that are relevant to your business. They will also ask to examine any letters of recommendation from customers or employees. In addition, they will want to see any legal agreements that you have with current customers or investors.
After they have reviewed this information, you’ll have to monitor who has accessed these documents. This is a crucial characteristic of all investor data rooms because it allows you to take appropriate action if any issues arise regarding the disclosure by an individual of information about your company. A good VDR for investment banking will provide one view of your documents and allow the user to limit or revoke access to documents if required.