Using a Data Room As an Investment Tool

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Investors will want all documentation a startup has available to them during due diligence. This could include legal documents, supplier and customer contracts, intellectual property information, market research and financial performance. A virtual data room is a central place to store, manage and maintain this massive amount of data. You can also track who has accessed the data and how long.

It is important to include a printable version of your financial model in the data room, regardless of whether you use Sturppy for creating it or a different software. This will allow investors to confirm assertions and assumptions, without having to ask for them later.

The majority of investors would like to read the business plan of your company which includes a road map and forecasts for the next three years. This gives you a clear picture of the way you intend to increase and expand your company.

A summary of your financials, including revenues, operating costs and capital expenditures to date as well as projected future profits and revenues. This provides investors with a complete picture of your finances from the day you started up to present day.

While you may already have presented a slide about the team in your pitch deck, and investors may have already viewed LinkedIn profiles, a specific section to highlight the personal backgrounds and experiences of the founding team members can help in their decision-making process. This is especially important if you’re looking to raise funds from institutional investors.