An investor data room simplifies due diligence and collaboration as well as decision-making during transactions. It enables investors to swiftly evaluate the worth of a company and offers intuitive communication tools that facilitate smooth engagement with multiple stakeholders. Due diligence software for investors is used by those responsible for evaluating and making investment decisions, as well as professionals who assist clients in navigating complex investments and individuals involved in M&A transactions.

You’ve made claims in your pitch about intellectual property (IP) of your startup. In the investor data room, you should show VCs and angels your patent numbers as well as trademarks, patent filings and other IP assets to ensure due diligence is carried out smoothly.

The purpose of your investor data room is to expedite the due diligence process, and ultimately, to negotiate an agreement to fund. To accomplish that you’ll need to create an organized data space with an easy navigation system and search capabilities.

It’s an excellent idea to have a detailed audit trail to monitor the amount of data shared, who is sharing it and when. Your team can easily manage the activity of users by using expired links, fence view watermarking, and granular permissions.

As you progress through the conversations with VCs or angels it’s likely that will be asked for more information. In the initial stage, a VC will require data to support your pitch, such as market fit or financial models. In stage 2, they’ll ask for more specific information about your business model, traction and staffing.