Virtual data rooms are an essential aspect of raising money for many startups. It lets companies provide important documents for due diligence with investors without having to send numerous confidential files. However, it’s vital for startups to be aware of what they should include in their investor data rooms, so that they don’t end up wasting precious time by adding unnecessary details.
Investors will likely to be able to view your presentation deck. They will also require access to the most up-to-date financial information you have (historical and projected). They will want to study your business model thoroughly, so they will want to examine cash flow statements, investment case studies, and discounted cash flow analysis models. They’ll also need to review your valuation calculation and monetization plan.
In addition, to the basic financials, they’ll also want to look over your IP information including trademarks, patent filings, and other IP assets that are relevant to your business. They will also want have copies of any employee or client reference letters. In addition, they will be looking for any legal agreements you have with your existing customers or investors.
Once they have viewed this information, you will need to to monitor who has accessed these documents. This is an essential aspect of any investor data room since it will enable you to take appropriate action in the event of any issues with an individual’s usage or disclosure of your company information. A good investment banking VDR will give you a a single view of this activity, and offer options to limit or remove access to particular documents if needed.
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