Investors typically have a lot of information they want to have access to. Some of it could be too much to fit into the format of a pitch deck or more detailed than you can include in your short one-pager. It’s important to have a virtual data room that can organize all your data, no matter its size or extent. This will ultimately speed up due diligence, build confidence in investors and increase your chances of closing the deal.
This includes confidential revenue projections and intellectual property ownership documentation for startups that seek funding. This allows investors to assess and evaluate the potential of the company for growth and value.
To this list, you can add any other pertinent corporate documentation that may include the legal structure of the business and governance to HR agreements and employee agreements. This is a procedure that companies often make check over here to ensure that investors are treated equally.
Additionally, investors are interested in the sustainability of the company. This is why it’s crucial for startups to have a long-term strategy which clearly outlines how the business will grow beyond its current stage.
It’s a good idea also to provide frequent investor updates through the data room. This lets investors feel like they are part of the team and will increase their likelihood to remain involved with the company in the future. The use of file access analytics is especially helpful in this regard, as it gives startups an at-a-glance glance at who’s looking at which documents.