A virtual data room for startups is a highly effective tool that provides an accurate picture of the company’s performance to assist acquirers and investors during due diligence valuation, offers and other. A well-designed VDR can speed up the process and avoid delays due to a lack of clarity.
In the initial stages of fundraising, it is important to load your startup’s data room as quickly as you can. This will save you valuable time that could be better spent in pursuing other opportunities. It is also important to include the key sections that can make the investor’s experience as smooth as possible. These key sections include:
Documents for the Company’s Organization
This section contains the most important documents of the business, such as articles and business certificates, as well as tax documents and legal documents. Investors will want to verify the authenticity of these files and the startup’s status as a corporate entity prior to making a decision about investing.
Pitch Decks
Founders are encouraged to upload their pitch decks to their data rooms even though they will likely be revised multiple times before reaching the final pitch deck that they will use when they meet investors. It is also recommended to upload the video of a brief presentation of the product, if it is possible.
Financial Information
This could include historical financial statements as well as projected ones, as well the assumptions and sources that guided the projections. Investors want to understand the financial position of the company to determine how they can assist the company reach its goals.