An investor data room facilitates due diligence, collaboration and decision-making throughout deals. It aids investors to quickly comprehend the value of a startup and provides effective communication tools to ensure smooth communication with multiple stakeholders. Software for investor due diligence is used by those who are responsible for evaluating investment decisions, professionals who assist clients navigate the complexities of investments and also the decision makers involved in M&A transactions.
You’ve stated in your pitch about the intellectual property (IP) of your startup. In the area for investor data, show VCs and angel investors your patent numbers, patent filings, trademarks, and other IP assets to ensure due diligence is conducted smoothly.
The goal of your investor data room is to expedite the due diligence process, and ultimately to reach an agreement to fund. In order to achieve this, you’ll want to create an organized space for data with simplified navigation and search features.
It’s recommended to have an audit trail to see the amount of data being shared, who is sharing it and when. With watermarking, expiring links, fence view and granular permissions, your team can manage the user’s activity easily.
When you’re having discussions with VCs and angels You’ll likely get requests for more information at various stages of the deal flow. In the initial stage the VC or investor will be looking for data that will support your initial pitch deck, which includes market fit and financial models. In stage 2, they’ll ask for more details about your business model, traction, and staffing.