https://peoplevdr.com/what-is-a-virtual-data-room/

If you’re a start-up seeking capital, a data room is a vital tool to help speed up the due diligence process. It allows buyers or investors of your business to examine the information and documents in a structured way and increase your company’s perceived value and reducing the time required to conclude a transaction.

Whether you are in stage 1 or 2 investors will require access to a variety of documents. It is essential to determine what documents are most relevant and then collect, organise and label them appropriately. Any investor or authorized party would like to sort through a plethora of documents that only waste their time.

A business plan, financial reports as well as intellectual property information ownership and incorporation information and pitch decks are a few of the most important documents. You may want to include prior investor updates since they prove that you’re a transparent company.

In addition to your data rooms, you must be careful who you give access to. The use of a virtual room (VDR) with activity reports will ensure that you only grant access to those who require it and monitor how long they are spending on each document.

Startups often forget that their intellectual property is valuable and should be included in the data room too. This can include trademarks, patent filings and even internal memos. Incorporating this information proves that you are serious about your IP and could help improve your startup’s standing in negotiations.