A virtual dataroom for startups is an effective tool that allows buyers and investors get an accurate picture of the company’s operations during due diligence valuation, offers, and due diligence. The best VDR will speed up the process and eliminate delays due to lack of clarity.
In the initial stages of fundraising, it is important to load your startup’s data room as soon as you can. This will save you precious time that could be better spent in pursuing other opportunities. It is also important to include key sections which will make the investor’s experience as smooth as it can be. These essential sections include:
Documents that pertain to the Company Organization
This section contains the most crucial company documents including articles of organization corporate certificates, business certificates, tax information, and legal documents. Investors should verify the authenticity of these files and the status of the startup as a corporation before making a decision about investing.
Founders should upload their pitch decks to their data rooms even though they’re likely to be revised several times before reaching the final pitch deck that they will use when they meet with investors. If possible, it’s also a good idea to include a short presentation video of the product.
This could include historical financial statements as well as projected ones, as well as the assumptions and sources that informed the projections. Investors want to know the company’s financial standing to determine the best way to help the company in achieving its goals.