Investors require a large amount of information to do their due diligence. It is therefore important to set up your data room as quickly as you can once you begin your fundraising efforts. By including all the http://www.vdrsupport.info/what-is-a-stock-market-and-how-does-it-impact-our-everyday-lives/ necessary documents, you will speed up the investment process.
It is also recommended to include an index or table of contents for each section of the data room to facilitate navigation. Private equity firms appreciate well-written documentation that is easy to navigate. In addition, it is important to highlight any information that has changed since the initial upload of the document. This will show that you are always on top of the situation and your willingness to be transparent throughout the entire process.
Investors are often asked to provide historical and/or future financial statements. This will allow investors to verify your numbers’ accuracy and ensure they are in line with your presentation deck. In addition, if providing projected financials, it is recommended to include the assumptions, sources and the reasoning behind the projections in the data room.
Some founders choose to include other documentation such as the resumes of the key team members as well as employee stock agreements and other documents regarding hiring. This can give investors a greater understanding of the character of the company and the strengths of its team. In addition some entrepreneurs may include an analysis of their market or growth strategy to show that the company is positioned to succeed in its industry.
