Virtual data rooms are a vital element in raising funds for a lot of startups. It allows companies to provide important documents for due diligence with investors without the need to send several confidential documents. It’s crucial for entrepreneurs to be aware of what they should include in their investor data rooms, so that they don’t waste valuable time by including unnecessary details.
Investors are likely to review your pitch deck. They will also require access to the latest financial information you have (historical and projected). Investors will want to look at your business model in detail which is why they’ll review cash-flow statements, investment case studies, discounted cash flow models, and discounted cash flow analysis. They’ll also likely to review your monetization plan and valuation calculations.
In addition, to the basic financials, they will want to be able to see your IP information including trademarks, patent filings and other IP assets that are relevant to your business. They will also want to look through any letters of recommendations from customers or employees. Finally, they will be looking for any legal agreements that you have with your existing customers or investors.
Once they have reviewed this information, you will need to be able to monitor who has accessed these documents. This is an important feature of any investor data rooms since it allows you to take action should any issues arise regarding the disclosure or use by someone else of information regarding your company. A great VDR for investment banking will provide you with one view and permit the user to limit or revoke access to your documents when needed.
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