Virtual data rooms are a vital part of obtaining funding for a lot of startups. It lets companies easily share important documents with investors for due diligence without sending them a bunch of confidential documents. It’s crucial for startups to be aware of what they should include in their investor data rooms to ensure that they don’t waste precious time by adding unnecessary details.
Investors are likely to review your pitch deck. They’ll also want access to the most up-to-date financial data you have (historical and projected). They’ll want to look at the business model of your company in depth, so they will want to examine cash flow statements and investment case studies and discounted cash flow analysis models. They will also want to look over your valuation calculation and monetization plan.
In addition, to the basic financials, they’ll want to look over your IP information including trademarks, patent filings and other IP assets that are relevant to your business. They will also want examine any employee or customer reference letters. They will also be looking for any legal agreements you have with current customers or investors.
Once they have reviewed this information, you’ll have determine who has accessed each of these documents. This is a vital feature of any investor data rooms as it allows you to take action in the event that any issues arise regarding the disclosure or use by someone else of information regarding your company. A good investment banking VDR will give you a one overview of this activity, and offer options to limit or remove access to particular documents if needed.
dataroomnote.com/data-room-cost-and-its-relevance-with-service/
