Investors require a lot of information in order to complete their due diligence. It is therefore essential to establish your data room as quickly as you can after beginning your fundraising efforts. You can accelerate the investment process by preparing all necessary documents.
To make navigation simpler to navigate, it is recommended that a document be included with an index of contents or a table of contents for each section within the data room. Private equity firms will value an organized document that is easy to navigate. It is also crucial to highlight any changes try this out made after the initial upload of a document. This shows that you are on top of things and also demonstrates your willingness to keep things in order throughout the entire process.
Investors often request historical and/or future financial statements. This allows investors to verify the accuracy of your numbers and ensure they are in accordance with your pitch deck. Additionally, if you are providing projections of financials, it’s a best practice to include the assumptions, sources and reasoning behind those projections in the data room.
Some founders opt to include other information such as the resumes of key team members as well as employee stock agreements and other documents regarding hiring. This gives investors a better idea of who the company is and the strength of its staff. Some entrepreneurs will also include a market analysis or growth strategy to demonstrate how their company is positioned to succeed.