Virtual data rooms are an essential aspect of raising money for many startups. It lets companies share important documents for due diligence with investors without the need to send numerous confidential files. It is crucial that startups understand what information they should include in their investor data rooms to avoid unnecessary time.
Investors will likely expect to be presented with a pitch deck, but they will also want to be able to access the most recent financial data (historical and projections). Investors will want to look at your business model in depth therefore they’ll need to review cash-flow statements and investment case studies. They’ll also want to review discounted cash flow models and discounted cash flow analysis. They’ll also be looking to review your valuation calculation and monetization plan.
They should also be able to see any IP assets that are relevant to your company, such as trademarks, patents and other IP assets. They will also want to see any letters http://dataroomnote.com/on-premises-vs-off-premises-database-the-difference/ of recommendation from customers or employees. In addition, they will be looking for any legal agreements you have with existing clients or investors.
You must track who has accessed these documents after they have been reviewed. This is a vital aspect of any investor data rooms because it will enable you to take appropriate action in the event of any concerns with an individual’s use or disclosure of information about your company. A good VDR for investment banking will provide one view of your documents and allow you to restrict or revoke documents access if needed.