Investors require a lot of information to conduct their due diligence. This is why it is essential to create your data room before you begin your fundraising efforts. By including all the necessary documents, you can accelerate the investment deal process.
To make navigation simpler To make navigation easier, it is recommended the document includes an index of contents or a table of contents for each section within the data room. Private equity firms will appreciate documents that are well-written and easy to navigate. It is also essential to note any changes made since the original upload of a document. This will show that you’re on top of things and also demonstrates your willingness to provide transparency throughout the entire process.
The inclusion of historical and/or forecasted financial statements is one of the most frequently requested requests from investors. This will enable them to confirm the accuracy of your numbers and also ensure that they are in line with your pitch deck. It’s also recommended to include in the data room the assumptions of the source, reasoning, and assumptions that you have used to justify your financial projections.
Some founders also include other documents like resumes of key members of the team as well as employee stock agreements and documents regarding hiring. This will give investors a greater understanding of who the company is and the strength of its staff. In addition certain entrepreneurs might include an analysis of market trends or a growth strategy to show that the company is set to be successful in its sector.