Investors require lots of information to conduct their due diligence. This is why it’s vital to prepare your data room immediately you begin fundraising. By including all the necessary documents, you will accelerate your investment deal process.
To make navigation easier It is recommended that the document is accompanied by an index of contents or a table of contents for each part of the data room. Private equity firms will value well-prepared documentation which is easy to navigate. It is also important to highlight any information that has changed since the initial upload of the document. This demonstrates that you are aware of the situation and demonstrates your ability to be transparent throughout the entire process.
Incorporating historical and/or projected financial statements is one of the most frequently requested requests from investors. This will allow them verify the accuracy of your numbers as well as ensure that they are aligned with your presentation deck. In addition, if you’re providing projected financial projections, it is recommended to include the assumptions, sources, and reasoning that underlie those projections in your data room.
Some founders include other materials including resumes of key try this out members of the team as well as employee stock agreements and documents regarding hiring. This can help investors gain an overview of the team and the business. Some entrepreneurs will also include a market study or growth strategy to demonstrate how their company is poised for success.