An investor data room can be a valuable tool for startups looking to raise seed/angel funds or Series A financing. It can be a key factor when a funder decides to work with you or provide you with a Term Sheet. It is frequently used to streamline due diligence.

In the process of setting up your data room, it’s important to anticipate what backers may need to see and supply them with the appropriate documents in a tidy arrangement of folders. This will help keep the process running smoothly and decrease the possibility of miscommunications.

One of the most frequent requests is for detailed financial statements. These are typically requested by VCs and investors to verify the numbers they’ve heard in your pitch deck (and to make sure they’re in line with). It’s also a good idea to include a company organizational/formation document in this section as well (company bylaws, business certificates, Tax ID information etc).

It is crucial to provide an exhaustive list of all intellectual property you own. It is easy for entrepreneurs to boast about their IP in a pitch but this needs to be backed up with complete patent filings, trademarks, and other documents that can give backers an at-a-glance view of the assets of your startup.

It’s likely that you have already presented your investor presentation prior to when investors seek access to your dataroom. However, it’s recommended to include this in your room, even if just as an additional reference. This will let them understand that the information in your data room is current and is a reflection of your most recent pitch.

https://www.freshboardroom.com/virtual-data-rooms-and-due-diligence-the-perfect-pair-for-mergers-and-acquisitions/