It is crucial to establish a Data Room for investors, whether you are raising seed or angel funding or Series A funding. This virtual “room”, which is used to track and share all the information an investor requires in order to decide whether or not to invest in your venture, enables investors to make their decision.
The most obvious thing to include in your Data Room for investors is your investor presentation. It will provide investors with an overview of your business’s history, financial model, and forward-looking projections. Making this information available in your investor data room is a good method to speed up the due diligence process and allow investors to dig into the details quickly.
All of your accounting records should be in your Data Room for Investors. This will give the historical data an investor will require to conduct an analysis of the cash flow discount. In any Data room designed for investors, a sound financial modeling that allows analysts to examine the assumptions and resilience of your business to market volatility is vital. Many startups have trouble with this kind of model and ask an expert to help. One tool that is utilized by 4,000+ startups is Sturppy It is an easy-to-use and user-friendly financial modeling platform designed for founders.
Based on the stage at which your company is it may be necessary to include: