When you’re raising startup funds, every detail you disclose will have a significant effect on the decision of the investor as well as impression. It is essential to get this right. Finding funding is a complicated process that requires careful due diligence by all parties involved.
A virtual data room (VDR) is a fantastic instrument to help facilitate the due diligence process from start to the point of. It ensures that all crucial documents are in one place and that investors are able to quickly and safely access them.
The VDR is an electronic space that permits startups to present a complete and precise picture of their business which can speed up the capital-raising process. Here are a few of the most important documents to include in the startup’s VDR:
Investor Updates
Include past updates from investors in the virtual data room www.worldvdr.com/why-does-your-startup-need-a-data-room-for-investors/ of your startup to show that you are serious about investor communications and are willing to share data, even after a first pitch. This lets investors know that you’re serious about due diligence and are prepared to address any issues that may arise.
Team Details
Including the names of titles, titles, and the salaries of your team members can help investors understand the company culture and understand the vision you have for the company’s future. You can include team bios as well as a summary of each founder’s experience and background.
Startups should think about including a copy of their investor agreement in the VDR. This is a great way to stop sensitive information as well as their IP from being disclosed outside of the due diligence process. By including a legal contract in the data room of the startup ensures that all stakeholders have the same understanding of what they have agreed to, which will reduce friction during negotiations.
