Due diligence of investors is an essential part http://dataroomnote.com/what-factors-make-one-data-room-better-than-the-other/ of the investing process. It’s the opportunity for investors to look into the financials and other documents of a startup, assess risk and decide whether or not to invest in the company. A well-organized and properly prepared data room can speed up the process, reduce the likelihood of misunderstandings or miscommunication, and boost confidence in the investor’s decision to move forward.
There are a myriad of things to include in a data room this article will provide a few of the essentials that all startups should be prepared for prior to pitching to investors.
Investor Updates
Updates on investor relations can be an excellent tool to show investors that you’re still following your plan and progressing toward your goals. This is particularly true in the early stages. This will allow them to see how far you’ve achieved since the last time you met and create confidence.
Intellectual Property Assets
Venture Capitalists and Angels are often interested in the intellectual property of a company which plays a major role in its valuation. Include trademarks, patents and other pertinent data even if it’s not directly connected to your product.
Cap Table
A clear cap table shows potential investors the percentage of ownership you hold and how it’s broken down. Include your articles of incorporation, which provide legal background for your company’s structure.
