When it is about raising startup funding each detail you provide will have a significant impact on an investor’s perception and their decision. This is essential. Finding funding is a complicated process requiring detailed due diligence from all involved parties.
A virtual dataroom (VDR) can be a powerful tool to assist in the due diligence process. It ensures that all important documents are available in one location and that investors can easily and safely access them.
The VDR is a digital space that allows startups to present a complete and exact picture of their company which can speed the capital-raising process. Here are the most important documents that startups must include in its VDR:
Investor Updates
Include any previous investor updates in the virtual data room of your startup to show that you value investor communications and are willing to share information even after a pitch. This shows investors that you are committed to the due diligence process and are willing to address any issues that arise.
Team Details
Incorporating the names, titles, and salaries of your team members can aid investors in understanding the company’s philosophy and also see the vision you have for your startup’s future. It is possible to include bios of the team and a summary about each founder’s expertise and background.
Startups should consider including a copy their investor agreement in the VDR. This is a great way to prevent sensitive information and 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 parties have the same understanding of what they have agreed to, which can make negotiations less tense.
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