Using a Data Room As an Investment Tool

Investors will be looking over all the documentation that a startup has available at its disposal during due diligence. This includes legal documents, customer and supplier contracts, intellectual property information along with market research and financial performance. A virtual dataroom is a central location to store, manage and update all of the information. You can also track who has accessed your data and how long.

It is essential to include a downloadable version of your financial model within the data room, regardless of whether you are using Sturppy to create it or some other tool. This will allow investors to confirm assertions and assumptions, without needing to request them later.

Investors want to see your business plan, which contains a roadmap and forecasts for the next three years. This gives a clear understanding of how you intend to expand and grow your company.

A summary of the most important financials showing revenues, operating costs and capital expenditures to date as well as the projected future revenues and profits. This provides investors with a complete picture of your finances beginning from the day you first started through the present.

Although you may have already presented a slide on the team in your pitch deck, and investors are likely to have looked over LinkedIn profiles, having a separate section to highlight the individual backgrounds and experiences of the founding team could help in the decision-making process. This is particularly crucial if you plan to raise from institutional investors.

www.visualdatastorage.org/different-types-of-business-models/