https://dataroomtools.com/benefits-of-an-investor-data-room/
A virtual data room (VDR) is an online repository that allows sharing of sensitive documents and files. Startups seeking funding may submit confidential revenue forecasts, detailed financial records as well as IP ownership documents to an investor data room. This allows potential investors perform due diligence quickly and make informed choices.
Startups need a data rooms for investors in order to streamline due diligence and to arrange information. This tool helps reduce communication time and speed up the decision-making process in a deal.
Which Documents Should be Saved in an Investor Data Room?
In an investor data room Startup documents are usually kept, regardless of industry. These include capitalization charts, and details on prior funding. The data room can also include technical documents, such as system architectures and integrations or documentation for existing products. Investors will also want to review intellectual property documents including patents, trademarks and filings.
Even before making a decision to raise funds the founders should consider the creation of a data room for investors. In this way, the business will have all its historical data kept in one place and is able to easily present investors with the information during due diligence, without having to recreate the presentation from scratch. In addition, the VDR should provide accurate analytics, such as audit trails and activity monitoring so that the startup can track what documents are being watched and by who.