In recent times, venture capital funding has been moving at a rapid rate. This leaves investors with little time to delve into the details of each deal. It’s the responsibility of the founders to ensure that their due diligence is as effective as it can be by utilizing an online data room.
Whether you’re raising Series A funds or simply making preparations to present your business to an investor who is new to you it’s crucial to have your stage 1 data room set to go before you have one fundraising meeting. Having your data organized and easily accessible is the most efficient method to speed up the process of investing and ensure that investors have access to the information they need.
A stage 1 data room usually contains the pitch deck and financial statements (including the year-to-date and quarterly income statement) and any other relevant information you’d like to communicate. It should also include a section that highlights your market research done by hand and analysis of competition to help investors understand your unique position in the market.
Include any previous updates to investors you’ve received. This includes milestones that you’ve reached as well as any concerns that were previously raised by investors. This is an excellent method of demonstrating your willingness to be transparent with potential investors and could make the difference in their decision to invest.
When choosing a virtual room pick one that is easy to use and allows you to share files with trusted third parties. Also, make sure that the service provides a full set of features such as the bulk-upload/import feature, customizable watermarking, and a built-in NDA that can streamline the process and make it easier to complete the documents.
https://dataroomsonline.net/streamlining-ma-deals-how-data-room-services-facilitate-due-diligence/