Using a Data Room As an Investment Tool
Investors will be looking over all the documentation startups have at their disposal during due diligence. This includes legal documents and contracts with customers and suppliers, intellectual property data market research, as well as financial performance. A virtual dataroom is a central location to store, organize and keep up-to-date all of this information. You can also track who has accessed your data and how long.
Whether you use Sturppy or another tool to build your financial model, it is recommended to include a downloadable version of your data room. This enables investors to validate your assertions and assumptions without needing to ask for them again in the future.
Investors will want to review your business plan, which includes an outline of your business plan and forecasts for the next three years. This gives a clear understanding of the way you intend to expand and grow the business.
A summary of the key financials that include revenues, operating costs and capital expenditures up to date as well as the projected future revenues and profits. Investors can get an overview of your financials from when you started to today.
You may have included a slide about your team members in your pitch deck and investors may have viewed LinkedIn profiles, a dedicated section that highlights the individual backgrounds and experiences of the founding team could give more weight to their decision-making process. This is particularly important if you are planning to seek funding from institutional investors.