Investors want as much as they can about startups prior to investing. They want to know everything from financials to competitor analysis and much more. The more organized the founders are the more easy it is to conduct due diligence for investors. To make the process more efficient you should create a dataroom for http://vdrdata.com/dealroom-platform-review-fully-automated-investment-management-system investors that contains all relevant documents and information.
What documents should be included in an investor data room?
Although every startup is distinct The majority of documents needed to complete the funding round are the same. Some examples of the most important documents to be included in an investor data room are strategy documents pitches, pitch decks and product plans, and company bylaws or articles of organization.
Investors are also advised to look over stock option agreements, non-compete agreements, and employee agreements. These kinds of documents are usually extremely sensitive, and having them in a secure, accessible online repository is the most effective way to ensure they are only shared with authorized third parties. Utilizing a virtual data room solution such as CapLinked’s that has digital rights management capabilities allows users to control the way a document is used, making sure only those who require access to it have access.
Included past investor updates in an online investor data room is another effective way to demonstrate to potential supporters that you are transparent and committed to sharing information with them throughout the fundraising process. It also builds confidence, allowing you to move faster in your fundraising.