Many startups and large enterprises use fundraising rounds to grow their business. Fundraising often requires a lot of document sharing with investors, therefore it’s important that the information is organized and readily accessible to all those involved in the process. It’s commonplace for companies to utilize virtual data rooms to facilitate fundraising and M&A due diligence, ensuring that all relevant parties have access to the appropriate information at the right time.
When creating the VDR for fundraising, it’s essential to be aware of what information is the most crucial. Some of the most important items to include are a pitch deck, basic financials (P/L, cash metrics and projections) as well as a cap table with the explanation of any changes or commitments, and your most recent term sheet. It’s recommended to include a company summary that outlines the key characteristics and advantages of your company.
Included in your application are documents such as a list of the names of all former and present employees, their Learn More titles of employment and salary details as well as a list of contact details for prospective and current customers and first-hand information about the market, and a competitor analysis. You can also include a map of your competition and growth statistics, based on the type funding you’re looking for. To ensure security standards and avoid unwanted disclosures, it’s ideal for the data room to be locked behind digital non-disclosure agreement (NDA) agreements that can be signed with one click. Some modern VDR providers, like Flow and others, provide live chat functionality in the application for users. This enables all parties to communicate with data and ask questions.