Venture capital investment has risen in recent years. This doesn’t leave investors much time to dig into the specifics of each deal. So, it’s up to founders to make their due diligence process as efficient as possible with a well-organized virtual data room.
When you’re trying to raise Series A funds or just making preparations to present your business to investors who are new it’s crucial to have your stage 1 data room prepared to go prior to even a single discussion about fundraising. The ability to organize your data and make it easily accessible is the best method to speed up your process of investing and ensure that investors have access to all the documents they need.
A stage 1 dataroom typically includes the pitch and financial statements (including quarterly income statements as well as year-to-date income statements) and any other information you want to share. It also should include a section of your market research done by hand and competitive analysis to help investors understand your unique position in the market.
Include any previous updates to investors you’ve received. This includes milestones reached as well as any concerns that were previously raised by investors. This is an excellent way to prove that you’re transparent with potential investors. It could make a difference in their decision.
When selecting a virtual storage room, you should choose one that is user-friendly and lets you share files with third parties via a secure link. Be sure the service offers a comprehensive collection of features, including an import/bulk-upload feature, customizable watermarking and a built-in NDA that can simplify the process and eliminate the need for extra paperwork.