A VC or investor has expressed interest in your startup and has asked for more data. They want to validate what you’ve shared in your pitch deck and are looking for more detailed information regarding your business model, traction and financials. This is where an investor data space is a must.

The difference between winning or losing an investment deal can be determined by getting it right. Investors are busy and don’t have a lot of time to waste on slow processes, so you need to be ready as soon as an interested investor comes in. With the right information in an online data room will help both parties save time, and shows you’re committed to fundraising.

To run a successful investor data room, you should start by creating a folder structure that is clear and logically labeled. Only include the documents that investors need to complete their due diligence. This will differ depending on the stage of the deal, but generally includes:

IP Information (patent filings and trademarks)

Documentation on people (resumes and employee stock agreements and documents on hiring).

Financial Information (historical and projected), including assumptions, sources, and the reasoning behind these projections

Consider incorporating documentation to prove that your business is in compliance with national, local and international regulations. This is an excellent way to https://dataroomproducts.com/how-to-run-an-investor-data-room-for-your-startup/ show investors that your company is in compliance with local, national or international regulations. The last but not least, include sustainability documents in the long-term (e.g. a carbon emission reporting system or other environmental sustainability metrics). A virtual data room that provides analysis of file access could aid startups in preparing for meetings with investors. This can lead to more productive conversations and a better understanding of the issues investors are most concerned about.