VCs often want more than a brief pitch deck or teaser, which startups believe is enough to secure funding. Investors want to know more about the company, including its history and development, as well verifying the information they were given during their initial meeting. This is where an investor data room is a must, as it provides an centralized repository of all the documents and information which must be shared with potential investors for due diligence purposes.
Startups can make use of a virtual deal room to manage and share all their documents during the fundraising process and to conduct due diligence with investors. They can also track their activity by using file access analytics, which allows them to know who has accessed what when, and how long. This gives them the data they require to personalize conversations and provide a more informed service to investors.
In the investor data room are projected and historical financials along with the captable. In-depth information about the growth rate of the company and its competitive landscape is another good idea, as is as the details of any acceleration clauses promised to shareholders currently in the company. A list of all the IP assets that the company holds should also be included.
The fact that you have this information on hand is a great way to show investors that you are on top of things and are able to answer any questions they may have. This can also speed up the process of due diligence, since you can provide all the information needed to investors in one location.