A data room is an essential tool to conduct due diligence, whether you’re raising Series A financing or closing the closing of a merger, acquisition or investment deal. It lets you consolidate all documents in one place and allow third parties to access the information in real time without having to send emails or request new copies.
While it’s tempting to fill your investor data room with everything you have make sure not to overwhelm your potential investors. Having too many documents can make the due diligence process lengthy and frustrating for both parties. A well-organized dataroom is crucial to ensure that investors have the ability to quickly and efficiently examine your company’s financial health as well as operational strategy and legal standings.
Investors will be interested in your startup’s future and historical financial statements. They will also want to know the source of any assumptions or modeling, as well as the rationale behind these. You may also include a list of past http://dataroomnote.com/ capitalization tables, financing agreements and other data. founders who have a convincing enough pitch to attract VC interest often put a copy or a draft of their pitch deck to their data room too.
Your investor data room should include clearly defined headlines on every slide. It can be difficult for an investor to navigate through a long technical slideshow if titles are unclear or confusing. Avoid using non-standard analytical methods instead of conventional ones (e.g. showing a portion of the Profit & loss statement as opposed to. an entire overview).