Important Sections of a Data Room for Startups

A virtual dataroom for startups is a powerful tool that allows acquirers and investors to get an understanding of the company’s due diligence valuation, offers, and due diligence. A well-designed VDR will accelerate the process and reduce delays because of lack of clarity.

In the beginning stages of fundraising, it is important to load your startup’s database as quickly as you can. This will save time that you could use to pursue other opportunities. Furthermore, it is important to include important sections that will make the experience for investors as seamless as is possible. These sections are typically:

Documents of the Company Organization

This section includes the most important documents for companies like articles of organization, business certificates, tax information and legal documents. Investors should verify the authenticity of these files and the startup’s status as a corporation prior to making an investment decision.

Pitch Decks

Founders are encouraged to upload their pitch decks to their data room even the fact that they may be rewritten several times before they get to the final pitch deck they will present to investors. If possible also a good idea include a short video presentation of the product.

Financial Information

This can include historical and projected financial statements and the assumptions and sources guiding the projections. Investors want to know about the startup’s financial status to determine how to help the company in attaining its goals.