Investors will want to see plenty of details about your startup, including the business model. This is why you need an organized and simple to navigate investor data room, particularly if you’re raising venture capital. A good investment due diligence data room makes your life much simpler and can speed up the process.
Investors typically request information at two distinct places. The first is the data needed to create a term sheet (which includes your pitch deck, as well as more precise versions of the VC’s analysis of your product-market fit financial models, as well as a cap table). The second set of information is more detailed due diligence information that you will receive after receiving the term sheet. This includes a more detailed disclosure of company documents as well as securities-related documents, as well as material agreements and staff.
It is also recommended to look for an enterprise-grade VDR with a user-friendly interface that lets you upload or import large files in bulk and to add watermarks. This ensures that investors receive the most up-to-date information at all times. The ability to monitor who’s viewing your data is an important feature, as it will help you avoid leaks.
Some VCs claim that using an investor data room could delay the process of fundraising because investors have to ponder over every piece of information before deciding if they want to say yes or no. Many founders have reported that having access to a data space allows them to move quickly through the process.