A published here virtual dataroom (VDR) lets you share sensitive documents and files online. Startups looking for funding can submit confidential revenue projections, detailed financial records, and IP ownership documents into an investor data room, which allows investors to conduct due diligence in a timely manner and make well-informed investment decisions.
If they’re seeking venture capital investors for their next round of funding or preparing to close an M&A deal, startups require an investor data room in order to organize information and simplify the due diligence process. This solution can also help improve communication with stakeholders and helps speed decision-making throughout the process.
Which Documents Should be Saved in an Investor Data Room?
In an investor data room, startup documents are often saved, regardless of industry. These include term sheets, capitalization charts, as well as information on prior funding. The data room may contain technical documents, such as system architecture, integrations, and existing product documentation. Investors should also see intellectual property documents, like patents, trademarks, and filings.
Even before raising a round of funding the founders should think about setting up a data room for investors. In this way, the business will have its historical data stored in a single location and can provide investors with the information during due diligence without having to recreate the presentation from scratch. In addition the VDR should provide insightful analytics such as activity monitoring and audit trails so the startup can see what documents are being reviewed and by whom.