What to Include in a Data Room for Investors

Virtual data rooms are a vital part of obtaining funding for a lot of startups. It allows companies to easily share important documents with investors to facilitate due diligence without sending them a plethora of confidential files. However, it’s essential for startups to know what they should include in their investor data rooms so that they don’t waste valuable time by including unnecessary details.

Investors will likely to look over your presentation deck. They will also require access to the most up-to-date financial information you have (historical and projected). Investors will be looking at the business model of your company in depth and will want to examine cash flow statements along with investment case studies, discounted cash flow models, and discounted cash flow analysis. They’ll also likely to examine your monetization strategy and valuation calculations.

In addition to the standard financials, they’ll need to examine your IP information, including patent filings, trademarks, and other IP assets that are relevant to your business. They will also ask to see any letters of recommendation from customers or employees. Additionally, they’ll want to see any legal agreements that you have with current customers or investors.

You must track who has accessed these documents once they are reviewed. This is a crucial aspect of any investor data room since it will allow you to take the appropriate actions when there are concerns with an individual’s use or disclosure of your company’s information. A good VDR for investment banking will provide one view and permit you to restrict or revoke access to documents if required.

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