Investors need all the information they can get about your startup, prior to investing their time and money. A Data Room for investors can help them to make a better decision and speed up the process of due diligence before investing. This could mean the difference between your business receiving the funds you require and not.
Using a Data room for investors is a typical method used by startups seeking funding. A Data room for investors is a better option than sending the entire investor package via email or Google Drive (which hackers can easily access) and also lets you track any access problems. There are many options of software available for Data rooms for investors However, one of the best options is Caplinked which comes with many features to protect sensitive information and simplify the process.
What goes in a data room for investors
While most of the documents in this list are familiar to your prospective investor from your pitch deck or one pager, a comprehensive list can provide more clarity and prevent questions that might arise during due diligence. In this list is a detailed outline of the founding team and their background to show that your startup has a deep network to draw on in the event of need.
Other important elements include an official section that provides the company organization, formation and tax information. You could also include a cap table that clearly identifies who owns what much of the company. It is also a good idea to create a prototype or mockup of the product, particularly in the early stages, where it is difficult to show how the product functions and its potential value add.
http://vdrdata.com/dealroom-platform-review-fully-automated-investment-management-system/
Comment