What to Include in a Data Room for Investors

Virtual data rooms are a crucial part of obtaining funding for many startups. It allows companies to provide important documents for due diligence with investors without having to email several confidential files. However, it’s vital for startups to know what they should include in their investor data rooms, so that they don’t waste valuable time by putting in unnecessary information.

Investors are likely to get a pitch deck but they’ll also want to be able to access your most recent financial data (historical and projections). They’ll want to examine the business model of your company in depth They will also want to review cash flow statements and investment case studies and discounted cash flow analysis models. They’ll also likely to examine your monetization strategy and valuation calculations.

They will also need to see any IP assets that pertain to your business, such as trademarks, patents, and other IP assets. They will also request to look through any letters of recommendations from customers or employees. Finally, they will want to see any legal agreements that you have with existing customers or investors.

You’ll need to keep track of who has accessed the documents after they have been reviewed. This is a key feature of any investor data room because it permits you to take appropriate action if any issues arise with the disclosure or use by an individual of information about your company. A great VDR for investment banking will provide you with one view of your documents and allow you to limit or revoke access to documents in the event of need.

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