Data room fundraising is a procedure that involves attracting investment capital from investors who are interested in investing through a virtual platform. The platform provides easy and secure access to documents by only a specified list of individuals (e.g. prospective LPs). Data rooms offer better security than email, meaning your financials and business plan are less likely to fall into the wrong hands. You can limit who can access the documents. You can restrict those who are allowed to view, download, or print them.
Investor data rooms are a vital instrument for startups during capital raising. The platform lets founders streamline due diligence procedures and communicate efficiently with investors. All pertinent information is stored in one location, which saves time and eliminates the back and back and forth communication that would normally be done via email and phone calls.
What Should I Include in My Investor Data Room?
It is important that a startup includes an entire set of relevant documents needed for its stage of development. This could include a current presentation deck, financials in the simplest form, including cash metrics, a projection of the year and a captable, in addition to any recent updates on milestones reached or commitments made in the current round.
It is also essential to provide details about your intellectual property (IP). It is important to prove that you have an impressive IP portfolio. Include your trademarks, patent numbers and filed applications. It’s also beneficial to include some information that is qualitative about your company like user retention and engagement data (but be careful not to pick the wrong ones! ).