A data room is a digital platform that lets startups upload important documents for due diligence prior to a funding round or an M&A deal. This typically includes the company’s financial projections as well as extensive IP ownership documents. This information is made available prospective investors, who can make informed decisions when investing in a start-up.
When preparing an investor information room, founders may choose to include the following information:
Pitch Decks or Whitepaper: Founders can upload their pitch decks and whitepapers that describe how their product/service solves complex problems or markets clearly and is profitable. Adding this document helps to build trust and establish that they are accountable to investors.
Projections: Founders may include both historical and projected financial statements, including the assumptions, sources and the reasoning behind the projections. This will streamline the due diligence http://dataspacelab.net/5-things-to-know-about-investing-in-a-private-equity-fund/ process and help investors comprehend the company’s financial forecasts and growth potential.
People-Related documents: Founders may include resumes of key team players, as well as any documents regarding hiring. Founders can also choose to include their go-to market and growth strategy.
Investor Updates During the fundraising and due-diligence process, founders may add a series investor updates to the VDR. Investors are kept informed of the developments of the business and shows them that the company is committed to making the best use of their investment.
