An investor data room is a virtual or physical space that contains all information, data and documents that are relevant to due diligence when a startup is looking for investment. It is a great way to display the startup’s expertise and build an image of trust with potential investors. It is essential to keep in mind that a data space must be secure and privacy-controlled because any leaks of information could cause harm to the reputation of a company. It should utilize advanced software in order to ensure that only authorized users are allowed to access sensitive documents. It is also essential to choose a dataroom that gives real-time data on the way documents are viewed.
What should you include in your Investor Data Room
You’ll likely engage in discussions with investors or VC firms where they will ask for more details than what’s in your deck. They may then request access to your data room as part of their due diligence.
Investors want the supplementary due diligence data you’ve provided http://vdrtechnology.info/is-it-safe-to-upload-sensitive-information-into-investor-data-room/ as well as any additional research they’re conducting for example, market research reports from firsthand sources and public market information. They will also review your financials, including historical performance and the projected future performance.
You should include a section that shows how much you’ve grown and the reasons for it. It is essential to include the full list of your management team, along with their salaries and job description. In addition, you’ll need to provide a full legal section including amended and updated articles of incorporation.