Many businesses and startups are involved in fundraising rounds as a means to grow their businesses. Fundraising typically requires a lot of document sharing with investors, which is why it’s essential that the data is organized and easily accessible to all those involved in the process. Virtual data rooms are often employed by companies for fundraising as well as M&A diligence. This ensures that all parties have access to the correct information at the right moment.
When creating an VDR to raise funds, it is crucial to consider what information is essential. Include a pitch deck along with an overview of any commitments or events. Also include a cap table and describe what transpired. Include a synopsis of your business that outlines the most important advantages and features.
Included in your application are documents like a list with the names of all former and current employees, their titles of employment and salary information as well as a list of contact information for clients who are current and upcoming and first-hand information about the market and an analysis of your competitors. You can also include a competitive map and growth statistics, based on the type of funding you’re seeking. To maintain security standards and prevent unauthorized disclosures it is a good idea for the data room to be locked behind digital non-disclosure agreements (NDA) agreements that can be signed at one click. In addition, some modern VDR providers like Flow provide live chat support for users, providing an easy way for all stakeholders to ask questions and interact with the data.