Venture capital investment has risen in recent years. Investors don’t have time to delve into each deal. It’s up to founders to make their due diligence process as efficient as they can with a well-organized virtual data room.
It’s essential to have your stage 1 dataroom ready prior to any discussion on fundraising, regardless of whether you’re seeking series A funding or simply getting ready to pitch a new investor. Having this data organized and easily accessible is the best way to speed up the investment process and ensure that investors have access to the information they need.
A stage 1 dataroom generally includes the pitch and financial statements (including quarterly income statements as well as year-to date income statements) and any other information you would like to disclose. It should also include a section showcasing your market research conducted by you personally and analysis of competition to help investors understand your unique position in the market.
Include any previous updates from investors you’ve received. This includes milestones achieved and any concerns raised by investors. This is a great way to show that you’re honest with potential investors. It can impact their decision.
When selecting a virtual data room, choose one that is simple to use and allows you to share files with third parties by way of a secure link. Also, be sure the service you choose offers a complete collection of features, including a bulk-upload/import feature, customizable watermarking and a built-in NDA that can simplify the process and eliminate the need for extra paperwork.