What Documents Should Be Saved in an Investor Data Room?
https://dataroomtools.com/faq-about-the-due-diligence-process/
A virtual dataroom (VDR) allows you to share sensitive files and documents online. Startups that seek funding can submit confidential revenue projections, complete financial records, and IP ownership documents to an investor data room which allows potential investors to conduct due diligence in a timely manner and make informed investment decisions.
Startups require a data room for investors to simplify the due diligence and organize the information. This solution can help improve communication and speed up the process of making decisions throughout a transaction.
What documents should be saved in an Investor Data Room?
In an investor data room Startup documents are usually saved, regardless of the industry. These include term sheets, capitalization charts, and information about previous funding. The data room may contain technical documents like integrations, system architecture, and product documentation that is already in place. In addition, startups’ investors will want to review intellectual property documentation, which includes patent numbers and filings, trademarks and other proprietary assets.
Before raising a round of funding the founders should consider creating a data room for investors. So, the startup can keep all the historical data in one place and easily share it with investors during due diligence without the need to recreate the presentation. The VDR should also provide insightful data, such as audit trails and activity tracking in order that the startup can keep track of the content that is viewed by who.