A virtual investor data space contains all the information potential financial backers require to evaluate your company’s financing request, confirm commitment to a deal, and justify their decision in front of their supervisors. It is impossible to fit all the necessary information into the deck of pitches or an in-person meeting, and you certainly shouldn’t attempt to do so in the interest of safeguarding sensitive information.
A robust investor dataroom can make your business more attractive to investors and help speed up the process of fundraising. Incorrect information or a poorly designed data room could derail your deal. In this article, we’ll discuss what you should include in your investor data room and how to structure it to ensure optimum effectiveness.
During the due diligence stage sophisticated investors might seek information regarding your legal structure as well as tax information, articles, and much more. You may need to give them information on the contracts your company has with customers and suppliers as well as intellectual property, market research and many more.
Investors might also want to learn how you communicated with previous investors. This will show that you take transparency and communication very seriously. It is a key part of building trust with an investor.
Then, you’ll have to provide your team’s bios and identify any notable achievements that relate to your business. This is an excellent opportunity to differentiate yourself from other startups that are seeking funding. However, you should be careful not overshare, as you don’t want any information that could reveal trade secrets of your competitors or other sensitive information.