https://dataroomproducts.com/how-to-run-an-investor-data-room-for-your-startup/
A VC or investor has expressed interest in your startup, and requested more data. They want to validate what you’ve presented in your pitch deck and are seeking more specific information about your business model, traction and financials. This is the reason why an investor data room comes in.
The difference between winning or losing an investment deal can be determined by getting it right. Investors are busy and don’t have a lot of time for slow processes therefore you must be ready the moment an interested investor approaches. The right information in a data room can save both parties time and show that you are serious about fundraising.
To run an investor data room efficiently, you must begin by creating an organized folder structure that includes logically identified subfolders. Include only the documents investors require to complete their due diligence. This will differ based on the stage of the deal, but typically includes:
IP Information (patent filings and trademarks)
People-Related Documentation (resumes, employee stock contracts and documentation on hiring)
Financial Information (historical and projected) including assumptions, sources and reasoning to support these projections
You could also consider incorporating documentation to show that your business is in compliance with national, local or international regulations. This is an excellent way to put investor’s minds at rest early on and help them feel confident that the company is operating legally. Additionally, you should consider including files regarding sustainability over the long term (e.g., a carbon emissions reporting system or other measures to sustain the environment). Using a virtual data room which incorporates data access analytics can help startups to plan ahead of meetings with investors’ representatives. This will lead to better conversations and a greater understanding of the issues investors are most worried about.
