The process of fundraising isn’t easy for a new company. Startups must provide a variety of materials, from investor pitch decks and financial documents to show they are worthy of investment. A fundraising data room is among the most crucial materials in that it is used to disclose confidential information to potential investors.
A well-organised data room for fundraisers can enable parties to easily and quickly access the information they require. It is essential that the information provided in the data room is up-to date and accurate. Inaccurate or incorrect data can cause a loss of confidence to investors in your business and may result in legal action. Therefore, it is essential that you regularly update your data room to ensure that all information is up-to date and current.
The other information you should share in a data room for fundraising is your company’s business plan, financials (including P&L, cash flow and operating expenses), projections for the coming year, and a cap table. Include any SAFEs and convertible notes that your company has issued in previous rounds of funding.
It is also recommended to include a one-page description of your company’s marketing vision and brand to attract potential investors. A compelling fundraising dataroom will make your startup’s due diligence easier and improve the likelihood of getting investment from LPs.