http://dataspacelab.net/how-the-legal-industry-scrambles-to-handle-project-management/

You’ve spent a lot time and effort in your startup. You’ve created a product, found customers, created your pitch deck, forged connections, etc. If you’re serious about securing capital to fund your venture it’s vital to have an online data room for investors. This is a great method to accelerate the process of raising capital and attract investors.

A virtual dataroom is a repository that houses all the vital documents your company needs to communicate with investors as part of the due diligence process. It is a crucial element of any M&A and fundraising efforts as it gives investors a complete view of your company. This will help them make an informed decision and decrease risk by giving them the necessary information prior to investing.

If you’re fundraising money, the data room should contain your pitch decks and term sheets as well as your most recent financial statements. It should also include your latest projections, as well as a cap table, happenings and commitments. In addition, you should include a section that highlights any relevant competitor analysis and market research conducted by a person-to-person. If a business has a long history of satisfied customers, it could demonstrate its credibility and worth by including a section devoted to client referrals and references.

Having all of your documentation in one location makes it easier for investors to read and comprehend. It can also save time by removing the need to send individual files or create multiple versions. You can also see the activity statistics to know the time an investor has looked at your material.