When it is about raising startup funding, every piece of information you provide can have a major influence on the investor’s perception and final decision. This is crucial. The process of securing funds is a complicated process that requires detailed due diligence from all stakeholders involved.
A virtual data room (VDR) is an ideal tool to aid in the due diligence process from start to completion. It makes sure that all important documents are available in one location and Virtual data room that investors are able to easily and securely access them.
The VDR creates a digital platform for startups to showcase a comprehensive, accurate overview of their business and help speed up the entire capital-raising process. Here are a few of the most important documents to include in the startup’s VDR:
Investor Updates
Include any previous investor updates in the virtual data room of your company to show that you take investor communications seriously and are willing to share information even after your first pitch. This will also show investors that you are committed to the due diligence process and willing to work through any issues that might come up.
Team Details
Include the names, titles and the salaries of team members to help investors understand your company culture and the vision you’ve got for the future. You can also include bios of your team members and a brief description of each founder’s background and expertise.
A startup should also consider including an investor agreement in their VDR. This is a great way to ensure that sensitive information and their IP from being shared outside of the due diligence process. Create a legal contract with the startup’s dataroom to ensure that all parties are aware of the terms that have been reached upon, which can reduce friction during negotiations.
