An investor data room can be a valuable tool for startups looking to raise Seed/Angel or Series A funding. It could be a crucial factor in a backer deciding to partner with you or provide you with an agreement. It is also used as an instrument to simplify due diligence.

When setting up your data space it is important to anticipate what potential backers might need to see and supply them with the appropriate documents in a neat arrangement of folders. This will ensure that the process is running smoothly and decrease the chance of any misunderstandings.

One of the most common requests is for more detailed financial reports. These are often requested to verify the numbers included in your pitch deck. It’s also a good idea to include a company organizational/formation document in this section as well (company bylaws, business certificates, Tax ID information etc).

It is also crucial to provide a thorough list of any intellectual property you own. It is easy for entrepreneurs to assert their IP in the form of a presentation, however it is essential to back this up by detailed trademarks, patent filings and other documents that give prospective investors a clear overview of your startup assets.

It’s likely that your have already presented your investor presentation prior to when investors ask for access to your dataroom. However, it is a good idea to also include this in your room, even if it’s just as an example. This will allow them to know that the https://www.freshboardroom.com/virtual-data-rooms-and-due-diligence-the-perfect-pair-for-mergers-and-acquisitions/ information in your data room is up-to-date and is a reflection of your most recent pitch.