VCs are often looking for more than a simple pitch deck or teaser which startups believe is sufficient to secure funding. Investors need to know more about the company’s development and history and also verify the information they were provided at the beginning of their meeting. This is the reason why an investor data room can help, offering an centralized repository of all the data and documentation that needs to be shared with potential investors for due diligence reasons.
Startups can utilize a virtual deal room to share and manage all their documents throughout the process of fundraising and also to ensure due diligence when dealing with investors. They can also track their activity through file access analytics which lets them know who has opened what, when and for how long. This allows them to customize their conversations and offer better service to investors who are interested in investing.
In the investor data room are projected and historical financials and the captable. Detailed information on the growth trajectory of the company and its competition landscape is a good idea, as is as the specifics of any acceleration https://mpgpress.com/what-is-data-room-fundraising clauses made to shareholders who are already shareholders. A list of all the IP assets that the company has be included.
This information is a great opportunity to show investors you’re in control of the situation and able to answer their questions. It also streamlines the due diligence process since you can provide all the information to investors in one place.