Investors require a wide range of things. Some of it could be too much to fit in a pitch deck, or it might be more detailed than what you can share in your small one-pager. It is essential to have a data room that is able to organize all your data, regardless of its size or the scope. This will speed up due diligence, increase confidence in investors and increase your chances of closing the deal.
Startups seeking funding, this includes confidential revenue projections along with intellectual property ownership documentation and detailed financial records. Investors can analyze and evaluate the potential of growth for a company as well as its value.
The list also includes any other relevant corporate documents that could include the legal structure of the business and governance to HR agreements and employee agreements. This is a step that companies often do to ensure that their investors are treated equally.
Many investors are also concerned about the sustainability of the company. This is why it’s crucial for startups to have a long-term strategy that clearly articulates how the business will grow beyond its current stage.
It’s also a good idea to regularly update investors through the data room. Investors will feel more involved vdr security features in the startup if they feel like a part. This is why file access analytics are especially useful, since they offer startups a quick overview of who has viewed which documents.