What is an Online Data Room?
Back before we all had digital storage for our belongings, companies kept their most sensitive documents in an exclusive room that was accessible only to those who needed it. It’s now known as an investor dataroom (or VDR), and it’s one of the most important tools that a startup has when it comes to due diligence with investors.
An investment banking virtual data room makes the process of sharing the most important documents for your company with potential investors much simpler and faster. The aim is to reduce the amount of emails that contain confidential attachments that are sent to every individual investor, which is usually lengthy for everyone involved and can make the entire fundraising process more difficult than it is.
When choosing a VDR for your business Choose one that is easy to use and offers customer service in case you need assistance with setting up or have any queries. The most reliable investment banking VDR software will also allow you to upload large quantities of data fast, have intuitive search capabilities, and offer the ability to set permissions in a way that ensures your data is only accessible by the right people.
There are many different ways to organize your investor data room but the key is to include all the information that is required by investors as they conduct their due diligence. This typically includes your pitch deck (though it should be customized to each investor) and any market research reports or other public information you have. In addition, it’s often useful to include a list of customer references and referrals to show that you have a loyal client base.