Many companies, both large and startups use fundraising as a way of growing their business. Fundraising generally requires a great deal of document sharing with investors, which is why it’s crucial that the information is well-organized and accessible to all parties involved in the process. It’s standard for businesses to utilize virtual data rooms for fundraising and M&A due diligence, to ensure that all relevant parties have access to the right information at the right time.
When setting up the VDR for fundraising, you must think about what information is most important. Include a pitch deck with an overview of any commitments or events. Also, include a cap table to detail what transpired. Include a synopsis of the company that highlights the main characteristics and benefits.
Other important documents to include are an inventory of current and former employees, including their names, salaries, and commission structure; the list of customers who are currently and upcoming with contact information for market research conducted by firsthand sources; and competitor analysis. You could also include a competitive map as well as growth statistics, based on the type of funding you’re looking for. To ensure security standards are maintained and avoid unwanted disclosures, it is ideal for the data room to Learn More be locked behind digital non-disclosure agreements (NDA) agreements that can be signed at one click. In addition, certain modern VDR providers like Flow offer in-app live chat service for users, which provides an easy method for all parties to ask questions and interact with the data.