Investors require a lot of information in order to complete their due diligence. It is therefore essential to set up your data room as quickly as possible after you start your fundraising efforts. By incorporating all the necessary documents, you will accelerate your investment deal process.
It is also recommended to include an index or table of contents for each data room to aid in navigation. Private equity firms will value the quality of documentation that is easy to navigate. It is also important to note any changes made after 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.
The inclusion of historical and/or forecasted financial statements is among the most frequent requests from investors. This will allow investors to verify your numbers’ accuracy and ensure they are in conformity with your pitch deck. It’s also recommended to include in your data room the assumptions that you have used, the sources, and the reasoning behind your financial projections.
Some founders will also provide other documents like resumes of key members of the team, employee stock agreements and documentation on hiring. This will help investors get an understanding of the company and its employees. In addition, some entrepreneurs may include a market analysis or growth strategy to demonstrate how the company is www.vdrsupport.info/5-reasons-to-choose-docsend-as-your-virtual-dataroom poised to be successful in its sector.