An investor data room can be a valuable instrument for startups seeking to raise seed/angel funds or Series A financing. It could be a major element in a potential backer’s decision to work with you or give you the Term Sheet. It is frequently used to streamline due diligence.
It is important to know what your customers would like to see and then provide them with the relevant documents in an organized folder structure. This will ensure that the virtual data rooms and due diligence process is running smoothly and decrease the chance of miscommunications.
One of the most frequent requests is for more detailed financial statements. These are usually requested by VCs and investors to confirm the numbers they heard in your pitch deck (and to ensure they’re in sync). It’s also a good idea to include a company organizational/formation document in this section as well (company bylaws, business certificates, Tax ID information etc).
It is essential to give an entire list of the intellectual property you own. It is not difficult for entrepreneurs to make claims about their IP in a pitch. However, it is important to back this up with thorough patent filings, trademarks and other documents that provide supporters a quick overview of your startup’s assets.
It’s likely that your have already made your investor presentation available before investors request access to your data room. However, it is best to include this in your room, even just as an example. This will help them understand that the information in your data room is up-to-date and represents your latest pitch.