Startup fundraising can take a lot of time. The founder must spend much of their time finding potential investors, preparing documents and creating an elevator pitch deck. This is a major cost to the startup’s resources and it is crucial to remember that you’ll only have one shot at convincing an investor to invest in your venture.
The investor data room will help you accelerate the process. It allows you to securely and efficiently share all due diligence documents. It allows the investor to make a more informed choice faster and more efficiently. In addition the virtual deal room gives the impression that you are a serious and well-organized company.
When putting together an investor data room, it is essential to include all the information the investor will require. This should include a folder with crucial startup information, a deck with the most recent pitch as well as financial forecasts and cap-tables, market research and analyses, incorporation documents and any other relevant information to your company.
It is also essential to ensure that all of the documents in the investor data room are current. It is not a good idea to upload old documents and give the impression that you are unorganized. Documents should also be protected against unauthorized leaks using features such as remote disabling and watermarking.
