It is crucial to establish an Investor Data Room regardless of whether you’re raising Series A or Angel/Seed funding. This virtual “room” is used to share and track all of the information that an investor needs in order to make a choice about investing in your startup.
The most obvious thing you can include in your Data room for investors is your investor presentation. This will give them an overview of the company’s history along with financials, as well as forward-looking projections. The information you provide can be included in your investor database to facilitate due diligence and allow investors to look deeper into the details.
It is also important to keep all of your current accounting records in your data room for investors. This will provide the historical data that investors require for an analysis of your cash flow discounted. In any Data room designed for investors, a sound financial modeling that permits an analyst to analyze the assumptions and resilience of your company’s ability to withstand market volatility is vital. Many startups are struggling with this type of model and consult an expert for help. One excellent tool being used by more than 4,000 startups is Sturppy which is a user-friendly and easy financial modeling platform for founders.
Based on the stage of your company You may need to include other documentation along with it, such as: