Investors need to be aware of a variety click here to investigate of things. Some of it might be too large to fit into the pitch deck, or it might be more granular than what you can put in your small one-pager. It is essential to have a virtual data room that is able to organize all your data, no matter its size or extent. This will ultimately help speed due diligence, create investor trust, and increase your chances of closing the deal.
For startups seeking financing, this should include confidential revenue projections along with intellectual property ownership documentation, and detailed financial records. Investors can evaluate and assess a company’s growth potential and value.
The list also includes any other pertinent corporate documentation, which can range from the legal structure of a company and governance to HR agreements and employee agreements. This is a measure that many companies do to ensure that their investors are treated equally.
Many investors are also concerned about the sustainability of the business. It is therefore crucial for startups to devise a long-term action plan that explains how they will develop beyond their current stage.
It’s a good idea also to regularly update investors through the data room. Investors will feel more invested in the company as they feel like they’re being part of the team. Having file access analytics is particularly helpful in this regard, since it provides startups with an instant glance at who’s viewing which documents.
