What to Include in a Data Room for Investors

Virtual data rooms are a vital element in raising funds for a lot of startups. It lets companies easily share important documents with investors to facilitate due diligence without having to email them a plethora of confidential files. However, it’s important for entrepreneurs 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 information.

Investors are likely to expect to look over your presentation deck. They’ll also want access to the latest financial information you have (historical and projected). Investors will want to look at the business model of your company in depth and will want to look over cash flow statements along with investment case studies, discounted cash flow models and discounted cash flow analyses. They will also likely want to examine your monetization strategy and valuation calculations.

They will also need to be able to see any IP assets that pertain to your business, including trademarks, patents, and other IP assets. They will also want look over any employee or customer reference letters. They’ll also need to review any agreements you may have with current customers or investors.

Once they have viewed this information, you’ll need to be able determine who has accessed each of these documents. This is a page key characteristic of all investor data rooms as it allows you to take action in the event that any issues arise with the disclosure or use by one person of information concerning your company. A reliable investment banking VDR will provide you with a single view of this activity and offer the option of limiting or revoke access to particular documents if necessary.

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