If you are raising startup funds, every detail you provide will have a significant effect on the investor’s decision-making process and impression. Making sure you are doing it right is essential. Funding can be a complex process that requires careful due diligence from all parties involved.
A virtual data room (VDR) is an ideal instrument to help facilitate the due diligence process from beginning to finish. It ensures that all the necessary documentation is in one place and that investors can access it quickly and securely.
The VDR offers a digital space for startups to display a comprehensive, accurate overview of their business, helping in the capital-raising process. Here are the most important documents startups must include in its VDR:
Investor Updates
Include past investor updates in https://worldvdr.com/virtual-data-room-for-startup-fundraising/ your startup’s virtual data room can help demonstrate that you take investor communication seriously and are willing to share information, even after a initial pitch. This shows investors that you are serious about the due diligence process and are willing to work out any issues that arise.
Team Details
Include the names, titles and salaries of team members to help investors get a better understanding of your company culture and the goals you have for the future. Include bios of your team members as well as a summary about each founder’s skills and background.
Startups should also think about including an investor agreement in their VDR. This is a great way to ensure that their IP and other sensitive information from being disclosed outside of due diligence. Create a legal contract with the dataroom of the startup to ensure that all parties are aware of what was reached upon, which can make negotiations less tense.