Before we all had digital storage, companies stored their most important documents in the same room that was accessible to those who needed them. The room is now referred to as an investor dataroom (or VDR), and it’s one of the most essential tools a startup can use when it comes to due diligence with investors.
An investment banking virtual data room makes the process of sharing the most important documents of your business with potential investors much more simple and quicker. The goal is to decrease the amount of emails that contain confidential attachments that are sent to every individual investor, which is usually long-winded for everyone involved, and can make the entire fundraising process more difficult than it is.
If you’re looking for an VDR to use for your business, you should choose one that is user-friendly and has customer service available for questions or needing assistance. The best investment banking VDR software will also permit you to upload large quantities of data fast as well as provide intuitive search capabilities and provide flexible permissions options to ensure your data is only seen by only the right people.
There are a variety of ways to design an investor data space, but the key is to include everything investors require during their due diligence. This usually includes your pitch deck (though it should be tailored to each investor) and any market research reports or other public information you have. It is also beneficial to include references and referrals from your clients to show that you have a solid client base.