Using a Data Room As an Investment Tool

Investors will want to scrutinise every document the startup has at its available during due diligence. This may include legal documents, customer and supplier contracts as well as intellectual property data, market research and financial performance. A virtual dataroom is a central location to store, manage and keep up-to-date all of the information. You can also keep track of who has accessed the data and how long.

Whether you use Sturppy or another software to create your financial model, it is worth including a downloadable version of it in the data room. This allows investors to verify your assumptions and claims without having to ask for them again later.

Investors will want to review your business plan, which includes the roadmap and forecasts for the next three year. This provides a clear picture of how you intend to scale up and grow the company.

A summary of the key financial statements that show the revenue, operating expenses and capital expenditures up to date and anticipated future profits and revenues. Investors will get a comprehensive overview of your financials starting from the day you began until today.

While you may already have included a slide about your team in your pitch deck and investors are likely to have looked over LinkedIn profiles, a specific section to highlight the personal backgrounds and experiences of the founding team members can give more weight to the decision-making process. This is especially important if you are looking to raise capital from institutional investors.

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