Whether you’re seeking venture capital or a angel round, it’s imperative that startups keep all the documents required by investors in a secure, user-friendly investor data room. The right virtual dataroom can help investors streamline their due diligence process and cut down on time, all while creating a sense credibility and transparency among potential investors.
A VC typically reviews many documents, ranging from pitch decks and financial projections to company-specific performance data as well as many other documents that are related to business. It is essential that founders of startups prioritise documents that are most relevant to the investment criteria of the VC. Don’t include too many unnecessary documents to overwhelm potential investors and dilute critical information.
It is vital that a VDR is equipped with advanced functions to ensure users get an excellent experience. This includes a search function that allows users find files quickly, and a Q&A area that simplifies the communication between various stakeholders. A VDR should also be capable of handling large volumes without imposing additional charges.
A VC should also be able to access analytics that indicate who has visited which files and at what time. This can provide context for future discussions and investment. In addition, it’s important to select a user-friendly, professional-grade platform that offers free storage as well as the ability to upload large amounts of documents with watermarks. Carta Launch, an online document management platform specifically designed for early-stage founders, offers all of these features and more and is the ideal solution to manage the investor data rooms.