While data rooms are acknowledged as essential tools for M&A but it’s not well realized that they offer an equally significant benefit when a startup is raising capital. In fact an online data room is often an essential element of the investor due diligence process to help a startup stand above the rest and seal the deal.
In this article, we will examine what should be included in the virtual data room that is used for startup fundraising and how to create an effective one to speed up the process.
During the due diligence process prospective investors will need to see a variety of documents. It is crucial to keep all documents in order and consolidated. This will ensure that due diligence goes smoothly and will avoid delays in the closing of the deal.
A virtual data room enables startups to store all their key documents into a single safe and secure location which can be easily accessed by investors. This means that investors do not have to exchange documents via email and reduces the risk of sensitive information falling into the inappropriate hands.
The following are the most important documents to include in the startup dataroom:
Pitch Deck Presentation
Your pitch deck is the first impression you make. It’s a crucial tool for presenting your case and gaining the attention of investors. But if you don’t possess the following materials to back up your case, they won’t be convinced to invest their time or money into your company.