Investors want to view lots of information about your business, including your business model. You need a well-organized and easy-to navigate investor data room, particularly when you are seeking venture capital. The best virtual data room for investment due diligence will make the process faster and simpler.

Investors tend to request data at two distinct points. The first is the required data to prepare a Term Sheet (which includes your pitch as well as more detailed analysis of the VC’s product-market fit and financial models and your cap table). The second set of data is more specific due-diligence information requested following the receipt of the term sheet. This includes a more comprehensive disclosure of company documents and securities-related documents as well as material agreements and staff.

In addition to a good indexing feature, you should consider a professional-grade VDR that allows you to upload or import bulk files and also add watermarks. This ensures that investors receive the most current information at all times. The ability to track who’s http://dataroomsonline.net/online-vs-offline-data-rooms-comparison viewing your data is an important aspect, as it helps you avoid leaks.

Some VCs claim that having an investor data space can slow the fundraising process because investors have to ponder over each piece before deciding yes or no. But many founders claim that having access to a data room helps them to move much more quickly through the process.