Virtual data rooms are an essential aspect of raising money for a lot of startups. It lets companies share important documents for due diligence with investors without having to send numerous confidential documents. However, it’s important for startups to know what they should include in their investor data rooms so that they don’t end up wasting precious time by including irrelevant details.
Investors are likely to see your pitch deck. They will also want access to the most up-to-date financial data you have (historical and projected). Investors will want to look at your business model thoroughly therefore they’ll need to look over your cash flow statements along with investment case studies, discounted cash flow models and discounted cash flow analyses. They’ll also need to examine your valuation calculation and monetization strategy.
They will also need to see any IP assets relevant to your business, such as trademarks, patents, and other IP assets. They’ll also need to look over any employee or customer reference letters. Finally, they will want to see any legal agreements you have with your existing customers or investors.
After they have reviewed the information, you will need to be able to monitor who has accessed these documents. This is a crucial characteristic of all investor data rooms because it allows you to take appropriate action if any issues arise from the use or disclosure by an individual of information about your company. A good VDR for investment banking will offer you an all-in-one view and allow the user to limit or revoke access to your documents when needed.
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