It is vital to set up a Data Room for investors regardless of whether you’re raising Seed/Angel funding or Series A funding. This virtual «room» that can be used to record and share all the information that investors require in order to decide whether or not to invest in your business, allows you to make that happen.
Investor presentations are the most obvious element to include in your data room for investors. Investors will be provided with an overview of the company’s financial model, history and projections for the future. The information you provide can be included in your investor database to facilitate due diligence and allow investors to look deeper into the specifics.
All of your accounting records should be available in your Data Room for Investors. This will provide the historical information that an investor will require for an analysis of your cash flow discounted. In any Data room that is available to investors, a sound financial modeling that allows an analyst to evaluate the assumptions and resilience of your company’s business to market volatility is necessary. Many startups struggle with such a model and often hire an expert to assist them. One great tool that is being used by over 4,000 startups is Sturppy, which is a user-friendly and intuitive financial modeling tool for founders.
Based on the stage of your business, you may need to include other documentation as well, for example:
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