A virtual data room for startups is a valuable instrument that gives a clear picture of a company to assist acquirers and investors in due diligence, valuation and offers. The right VDR can accelerate the entire process and reduce delays due to lack of clarity.
During the early stages of fundraising, it is important to load your startup’s data room as quickly as you can. This will help you save valuable time that you could use on pursuing other opportunities. It is also essential to include important sections that can make the investor’s experience as smooth as possible. These key sections typically comprise:
Company Organization Documents
This section contains the most important documents of the company, such as articles and business certificates, as well as tax documents and legal documents. Investors will want to verify the authenticity of these files and the startup’s status as a company prior to making an investment decision.
Pitch Decks
Founders should upload their pitch decks to their data rooms even though they are likely to be modified many times before they reach the final pitch deck that they will use when they meet with investors. It is also recommended to upload a short presentation video of the product, if it is possible.
Financial Information
This could include historical and projected financial statements, as well as the assumptions and sources guiding the projections. Investors need to know the financial condition of the startup to determine the best way to help the company achieve its objectives.
