When it is about raising startup funding each piece of information you provide can have a major impact on the perception of an investor and their decision. It is essential to get this right. Securing funding is a complicated process that requires careful due diligence by all parties involved.
A virtual data room (VDR) is an excellent instrument to help facilitate the due diligence process from the beginning to the end. It helps ensure that all https://worldvdr.com/why-does-your-startup-need-a-data-room-for-investors/ documentation needed is available in one location, and that investors have access to it easily and securely.
The VDR offers a digital space for startups to showcase an accurate and complete picture of their business, helping in the capital-raising process. Here are the most important documents that startups should include in its VDR:
Investor Updates
Include any previous investor updates in the virtual data room of your startup to prove that you are serious about investor communications and are willing to share data, even after a first pitch. This shows investors that you are committed to the due diligence process and will work with any issues that may come up.
Team Details
Incorporating the names, titles, and salaries of your team members can help investors get a better understanding of the company’s culture and see the vision you have for your startup’s future. It is also possible to include bios of your team members, and a brief description of the background of each founder’s expertise and experience.
Startups should consider including a copy their investor agreement in the VDR. This is an excellent way to ensure that their IP and other sensitive information from being shared beyond the scope of the due diligence process. Including a legal agreement in the startup’s data room also ensures that all parties are aware of what they have agreed to, which will make negotiations less tense.