If your company is in the stage of growth or at the seed, it’s important to have clear and organised documents readily available to investors. Using data room software helps facilitate this and offers advantages like templates that are specifically tailored to your needs. This makes it easy to access and share the exact information you’re required to provide, decreasing friction to get the results you want.
Typically, virtual data rooms are typically used to aid due diligence during financial or legal deals between two or more parties. Virtual data rooms are utilized increasingly to facilitate the entire lifecycle of deal transactions, including fundraising and business restructuring. They streamline processes, provide security and enable collaboration and effective communication – all of which is crucial to the M&A industry.
It is important to determine what information you should include in your virtual data room and the best method to store it. This will vary by the larger story you’re trying to tell, so it’s worth spending time determining what information is required to give an investor the most complete picture.
For a company in the seed stage it is possible to include the Confidential Information Memorandum (CIM) along with the specifics of the Board structure as well as the organisational chart. the key contracts and relationships, milestones and metrics, or whatever else is relevant to your narrative. This will enable you to respond quickly to any questions an investor might have and prove the clarity of your information.