A VC or investor has expressed interest in your venture and requested more data. They want to confirm the information you have shared in your pitch deck and are looking for more specific information about your business model, traction, and financials. A data room for investors can assist.

The difference between winning or losing an investment deal can be made by doing it the right way. Investors are busy and don’t have the time for lengthy processes. You need to be prepared as soon as an investor is approached. The right information in a data room will save both parties time and show that you are committed to fundraising.

For a successful investment data room, start by creating an https://dataroomproducts.com/what-is-due-diligence/ organization structure that is clear and well labeled. Include only the documents that investors need to complete their due diligence. This will differ depending on the stage of the deal flow but generally includes:

IP Information (patent filings and trademarks)

Documentation on people (resumes and employee stock agreements and documents on hiring).

Financial Information (historical and projected), including assumptions, sources and the reasoning behind these projections

You may also want to consider adding documents that show your startup is in compliance with local, national or international regulations. This is a great method to assure investors that your business is in compliance with local laws, national or international standards. Not to mention, include sustainability documents in the long run (e.g. carbon emission reporting system or other measures of environmental sustainability). Using a virtual data space which incorporates analysis of file access can allow startups to be proactive in preparing ahead of meetings with investors’ representatives. This will lead to stronger conversations and an improved understanding of the questions investors are most worried about.