Using a Data Room As an Investment Tool

Investors will want all documents a startup makes available during due diligence. This could include legal documents and contracts with customers and suppliers, intellectual property data market research, financial performance. A virtual dataroom is an ideal place to store, organise and update all of this information. It also allows you to www.visualdatastorage.org/when-is-the-best-time-for-a-company-to-raise-money/ monitor who accesses the information and for how long.

It is crucial to include a PDF version of your financial model within the data room, whether you use Sturppy to create it or another tool. This allows investors to verify your claims and assumptions without having to ask you for them again in the future.

Investors will want to review your business plan, which contains the roadmap and forecasts for the next three years. This gives a clear understanding of how you plan to expand and grow your company.

A summary of your financials showing revenue, operating costs and capital expenditures up to date and forecasted future profits and revenue. Investors can get an overview of your financials from when you started to today.

You may have presented a slide on the team members in your pitch deck and investors will likely have checked LinkedIn profiles, a dedicated section that highlights the individual backgrounds and experiences of the founding team can provide additional weight to the decision-making process. This is especially important if you’re looking to raise from institutional investors.