A digital platform, known as an investment data room, enables investors to read documents related to the company. This tool can speed the process of due diligence and can help a founder show professionalism and transparency to potential investors.
A virtual deal room that’s professional can also be used to monitor and report on investor activity. A VDR will give you an overview of usage statistics which will inform you when and from where your data is used.
The legal documents, financial forecasts and business model presentations are among the most important documents startups should include in their investor data room. The information provided will give an accurate picture of the company and give investors a sense of how the company is doing.
A pitch deck and whitepaper are also important documents startups should include in their investor information room. These documents are used data room for investment deals to describe the problem your product solves, the way you’ve researched the market and how your product or service can be effective in solving the problem.
Founders should also consider establishing different investor data rooms based on the level of their interaction with potential investors. This way, you’ll be able to restrict the amount of information you provide at any given moment and only include the most relevant documents. This can be beneficial when it comes to building trust among investors, since you will only share information that you believe is essential.