A digital platform, an investment data space, allows investors to review documents of the company. This tool can speed up due diligence and help founders show professionalism and transparency towards potential investors.
A virtual deal room that is professional can also be used to track and report on the activities of investors. A VDR will provide you with an overview of usage statistics that will inform you how often and from where your information is accessible.
The legal documents, financial forecasts and business model presentations are among the most important documents that startups should include in their investor data room. These documents will give investors an accurate picture of the business and give investors an idea of how well the startup is performing.
Other crucial documents that startup companies can include in an investor data room include a pitch deck and whitepaper. These documents can be utilized to explain how your product solves problems and how you have evaluated the market, and how your product/service is effective in solving the problem.
Founders should also look into creating different investor data rooms based on the stage of their interaction with potential investors. You can limit how much information you share and only include documents that are relevant. This can be beneficial in building trust with investors as you will only disclose information you believe is important.