A virtual data room for startups is an effective tool that can paint an accurate picture of the company’s performance to aid investors and acquirers in due diligence valuation, offers and due diligence. The best VDR can accelerate the entire process and reduce delays caused by lack of clarity.
During the early stages of fundraising, it is crucial to fill your startup’s database as quickly as you can. This will save you precious time that could be used exploring other opportunities. Moreover, it is important to include important sections that will make the investor experience as seamless as is possible. These key sections typically comprise:
Documents for the Company’s Organization
This section includes the most important documents for companies like articles of incorporation corporate certificates, business www.vdrproducts.com/benefits-of-having-a-well-organized-data-room-for-startups/ certificates, tax information and legal documents. Investors need to confirm the authenticity of the files and the startup’s status as a company before making an investment.
Pitch Decks
Founders should upload their pitch decks to their data room even though they’re likely to be changed many times before settling on the final pitch deck to be used when they meet with investors. It’s also a good idea to include an introductory video of the product, if possible.
Financial Information
This could include both historical and projected financial statements along with the assumptions and sources used to make these projections. Investors should be aware of the startup’s financial situation to determine how they can assist the company achieve its goals.
