http://dataroomnote.com/boosting-investors-confidence-with-ipo/
Whether you’re in the process of raising Series A funding or trying to conclude an merger, acquisition or investment deal, having a data room for investors is a crucial tool to conduct due diligence. It helps streamline the collection of documents into a single repository, and allows third parties to access the data in real-time, without having to send you emails on a regular basis or request updated copies.
It’s tempting but you don’t want to burden your investors. A large number of documents could make the due diligence process lengthy and stressful for both sides. A well-organized, well-organized dataroom is necessary to ensure that investors are able to quickly and efficiently assess the financial health of your business, operational strategy, and legal status.
Investors should be able to view your startup’s past and future financial statements, including the basis and rationale of any assumptions and modeling. You may also include a list of current and past financing agreements and capitalization tables. Founders who have a strong enough pitch to draw VC interest will often upload a copy of their pitch deck in their data room, too.
Your investor data room needs to include clearly defined headlines on each slide. It can be difficult for an investor to navigate a lengthy, technical slideshow if the titles are unclear or confusing. Avoid using non-standard analysis instead of conventional ones (e.g. showing a portion of the Profit & loss statement instead of. an entire view).
