Investors require a huge amount of data to conduct their due diligence. This is why it is crucial to set up your data room immediately you begin your fundraising efforts. You can accelerate the investment deal process by preparing all necessary documents.
It is also recommended to include a document with an index or table of contents for each section of the data room to facilitate navigation. Private www.vdrsupport.info/what-is-a-stock-market-and-how-does-it-impact-our-everyday-lives equity firms will appreciate well-prepared documentation which is easy to navigate. It is also essential to make note of any changes made after the initial upload of a document. This shows that you are on top of things and also demonstrates your willingness to be transparent throughout the entire process.
Incorporating historical and/or projected financial statements is one of the most requested items from investors. This will allow them to confirm the accuracy of your figures and ensure that they are aligned with your presentation deck. Additionally, if you are providing projected financials, it is recommended to include the assumptions, sources, and reasoning behind the projections in the data room.
Some founders decide to include other materials such as resumes of the key team members as well as employee stock agreements and even the documentation for hiring. This can help investors gain an idea of the company and its team. Some entrepreneurs may also include a market analysis or growth strategy in order to show how their company is positioned to succeed.
