www.dataspacelab.net/flexibility-with-caplinked-data-room/
A data room online for investors is a digital platform where startups upload important documents related to due diligence prior to a funding round or an M&A transaction. This could include, for instance financial forecasts for the company and the company’s detailed IP documentation. This information is provided to investors who can use it to make informed decisions when investing in a start-up.
Founders are able to include the following information when preparing an investor data room:
Pitch Decks or Whitepaper Founders may upload their pitch decks as well as a whitepaper that describes the way in which their product or service addresses an issue or market in a clear way and is profitable. This document can help create trust with potential investors and demonstrate their accountability.
Projections: Founders might include financial statements from the past and projected. They can also include the assumptions of the source, reasoning, and assumptions behind these projections. This will simplify the due diligence process and help investors comprehend the company’s projected financial performance and growth plans.
People-Related Documents: The founders can include resumes of key team members and any stock agreements for employees or other documents in connection with hiring. The founders could include their growth strategy and go-to-market plan.
Investor Updates: Throughout the fundraising and due diligence process, founders may include a series of investor updates to the VDR. This helps to keep investors informed about the company’s progress and enables them to know that the company is committed to making the most of its investment.