A virtual dataroom (VDR) allows you to share sensitive files and documents online. Startups seeking funding may upload confidential revenue forecasts, detailed financial records as well as IP ownership documents to an investor data room. This allows potential investors to conduct due diligence quickly and take informed decisions.
Startups require a data space for investors to simplify due diligence and organize the information. This solution can help streamline communication and accelerates the decision-making process in the course of a transaction.
Which Documents Should be Saved in an Investor Data Room?
In an investor data room startup documents are typically saved, regardless of the industry. These include term sheets, capitalization charts, and data regarding previous funding. The data room might contain technical documents, like systems architectures, integrations or even existing product documentation. Additionally, startup’s investors should look through intellectual property documentation, such as patent numbers and trademarks, filings as well as any other proprietary assets.
Before raising a round of funding, founders should think about creating a data room for investors. This way, the startup will have its historical data kept in one place and can provide investors with the information during due diligence without having to re-create the presentation from scratch. The VDR should also include insightful analysis, such as activity tracking and audit trails, so that the startup can keep track of which documents are seen by who.