Using a Data Room As an Investment Tool Leave a comment

Investors will want to examine all the documentation that a startup has available at its available during due diligence. This can include legal documents, customer and supplier contracts intellectual property information along with market research and financial performance. A virtual dataroom can be a central area to store, manage and update all of the information. You can also track who has access to the information and how long.

No matter if you use Sturppy or another tool to create your financial model, it’s worth including a downloadable version in the data room. This will allow investors to confirm your assumptions and claims without having to ask you for them later.

Investors are likely to review the business plan of your company with a roadmap and forecasts for the coming three years. It gives a clear overview of how you’ll expand and grow https://visualdatastorage.org/when-is-the-best-time-for-a-company-to-raise-money your company.

A summary of your most important financials, including operating expenses, revenue and capital expenditures to date as well as projected future revenues and profits. This provides investors with a comprehensive overview of your financials starting from the day you began up to present day.

You may have shared a slide about the team members in your pitch deck, and investors may have already viewed LinkedIn profiles, a dedicated section that highlights the individual backgrounds and experiences of the founding team can add further weight to the decision-making process. This is particularly important if you are looking to raise funds from institutional investors.