In the course of the process of fundraising for startup companies, it is important to provide information about your venture to investors. It can speed up the process, establish confidence and increase the chances of getting the term sheet. The number of documents that you need to share with potential investors could soon become overwhelming. In this article, we’ll discuss how to manage an investor data room efficiently and efficiently.
Create separate rooms for each stage of the investment process. This will allow you to separate document accessibility based on investor interest. You could, for instance, use a simple folder system to manage data for early-stage investor who have expressed an interest in the company, but are not yet ready to invest. This stage includes documents like strategy documents, product plans and pitch decks.
In the second stage you will be able to provide more detailed information to investors who are getting closer to making the decision. This could include a comprehensive model and forecasts including historical and projected, legal documentation contract with customers suppliers contracts, intellectual-property information, and market research.
These documents more information can give investors an enhanced view of your business and give them the confidence that you are thorough. You could also include any previous investor updates, which shows backers that you take transparency and communicating with investors seriously. Your investor data room should also permit you to keep track of which documents were accessed and for the length of time. This allows you to spot suspicious activities and take appropriate actions if necessary.