A VC or investor has shown interest in your startup and has asked for more information. They want to verify the information you’ve virtual data room for businesses shared in your pitch and want more detailed details on your business model and financials. A data room for investors could help.

The difference between the winners and losers of an investment deal can be determined by getting it right. Investors are active and don’t have time for slow processes therefore you must be ready the moment an interested investor comes in. The right information in a data room can help both parties save time and show that you are committed to fundraising.

To operate an investor data room efficiently, you must start by establishing an organized structure for your folders with clearly labeled subfolders. Include only the documents investors need to conduct their due diligence. This will differ based on the stage of the deal’s process, but typically includes:

IP Information (patent filings, trademarks and intellectual property)

People-Related Documentation (resumes and employee stock agreements and documents on hiring)

Financial Information (historical and projected) including assumptions, sources, and the reasoning behind these projections

Consider adding documentation to prove that your business is in compliance with local, national and international regulations. This is an excellent way to reassure investors that your business is compliant with local, national or international regulations. Lastly, consider including files on sustainability for the long-term (e.g., a carbon emissions reporting system or other measures to sustain the environment). Using a virtual data space that includes analysis of file access can allow startups to actively prepare ahead of meetings with investors’ representatives. This can lead to more productive conversations and a better understanding of which concerns investors are most concerned about.