Many big and small enterprises utilize fundraising to expand their business. It is essential to have all the data organized and accessible for all parties involved in the fundraising process. It’s commonplace for companies to use virtual data rooms for fundraising and M&A due diligence, to ensure that all parties involved are able to access the relevant information at the right time.
When creating your VDR to raise funds, it’s crucial to consider what information is most critical. Include a pitch deck along with a summary of any commitments or events. Also like this include a cap table and provide a description of what happened. It’s important to include a summary of your company that outlines the key features and benefits of your company.
Other important documents to include are a list of current and former employees with their job titles, salary details and commission structure; a list of future and current customers with contact information; first-hand market research; and competitor analysis. Depending on the type and amount of financing you’re looking for you might also want to include a competitive landscape chart and growth performance data. Additionally, it’s a good idea to secure the data space behind digital, one-click non-disclosure agreements (NDAs) to ensure security standards and prevent unwanted disclosures. Some modern VDR providers, such as Flow which offers live chat capabilities in their app for users. This allows all stakeholders to interact with data and to ask questions.