Many businesses and startups participate in fundraising events in order to grow their businesses. It is important to have all the information in order and accessible to all those involved in the process of fundraising. Virtual data rooms are often used by companies to aid in fundraising as well as M&A diligence. This ensures that all parties involved have access to the right information at the appropriate time.
When creating an VDR to raise funds, it is crucial to consider what information is most critical. The most important items to include are a pitch deck, basic financials (P/L, cash metrics and projections) and a cap table that includes the explanation of any changes or commitments, and your most recent term sheet. Include a synopsis of your business that outlines the most important features and benefits.
Included in your application are documents such as a list of the names of all former and current employees, their job titles and salary details and a list of contact information for clients who are current and upcoming and research conducted by a first-hand source on the market, and an analysis of competitors. Depending on the kind of funding you’re seeking you might also want to include a competitive landscape graph and growth performance statistics. To maintain security standards and avoid unwanted disclosures, it’s best to have the data room to be secured behind digital non-disclosure agreement (NDA) agreements which can be signed in one click. Some modern VDR providers, such as Flow and Flow, provide live chat in their app for users. This allows all parties to interact with data and ask questions.