In the process of the process of fundraising for startup companies, it is important to provide information about your company to investors. It can speed up the process, establish trust and increase your chances of obtaining the term sheet. However, the number of documents you must be able to share with potential investors can quickly become overwhelming. In this article we will discuss the best ways to manage an investor’s data room efficiently.
Create separate rooms for each stage of the investment process. This allows you to segment access to the documents based on investors’ desires. You can, for example, use an easy folder system to organize documents for investors in the early stages who have expressed an interest in the business but are not yet ready to invest. This stage usually contains documents on strategy, pitch decks and product plans.
In the next phase you will be able to provide more detailed information to investors who are closer to making an informed decision. This can include a detailed model and forecasts both projected and historical, legal documentation, customer contracts supplier contracts, intellectual property information, and market research.
These documents will give investors a a more detailed view of your company and provide them with the assurance that you’re thorough. You can also include past investor updates, which shows your investors that you take transparency and communicating with investors seriously. Finally, your investor data room should allow you to keep track of who has visited which documents and for the length of time. This lets you identify any suspicious activity and take corrective action if necessary.
