A data room is a platform that lets startups upload important documents for due diligence prior to a funding round or an M&A deal. This can include, for http://dataspacelab.net/how-the-legal-industry-scrambles-to-handle-project-management/ instance financial forecasts for the company as well as detailed IP documentation. The information is then made available to investors who are interested and could assist them in making an informed decision about investing in the start-up.

Founders are able to include the following information when creating the data room for investors:

Whitepapers or Pitch Decks Founders are able to upload their pitch decks as well as whitepapers that outline the way in which their product or service addresses an issue or market in a clear manner and is profitable. The addition of this document can help build trust and demonstrate that they are accountable to investors.

Projections: Founders can include both historical and projected financial statements, including the assumptions, sources, and reasoning behind the projections. This can help simplify the due diligence process, and help investors better understand a company’s projected financial performance and growth prospects.

People-Related Documents: Founders may include the resumes of their team members and any employee stock agreements or documents in connection with hiring. The founders could include a growth strategy and their go-to-market strategy.

Investor Updates: Through the fundraising and due diligence process, founders are able to include a series updates to the VDR. This keeps investors updated on the developments of the business, and demonstrates to them that the company is committed to making the most of their money.