Whether your business is at the growth or seed stage, it’s important to have organized and clear documents that investors can access. Data room software can help you achieve this, and provides benefits such as templates that can be tailored to your needs. This makes it easier to find and share all the information that you require, resulting in an easier process.
Typically, virtual data rooms are usually used to aid due diligence in legal or financial deals between two or more parties. However, the technological advancements and the trend for remote working has meant that they are increasingly being used to support full deal lifecycles, and even business restructuring and fundraising. They streamline processes, ensure security and enable effective collaboration and communication – all of which is vital to the M&A industry.
It is crucial to determine the information that should be included in your virtual dataroom and how to store it. This will vary by the bigger story you’re trying to tell, so it’s URL worth spending time deciding what is required to give investors the most complete picture.
For a company in the seed stage you could include the Confidential Information Memorandum (CIM) as well as the details of the Board structure, the organisational chart, the most important agreements and relationships, milestones and metrics, or anything else that is relevant to your narrative. This will enable you to quickly respond to any questions an investor might have and prove the clarity of your information.