A startup can use virtual dataroom (VDR) to speed up fundraising. This is accomplished by providing the documentation potential investors need. This could include financial records, IP ownership documentation and detailed revenue projections. This information, together with a pitch, could help potential investors decide whether or not to invest in a company.
It’s important to remember that even with the ease of access that is provided by VDRs, it is important to remember that even though they are easy to access VDR, due diligence shouldn’t be taken lightly. Founders should make the effort to properly organize and label folders and files, as well as use consistent naming conventions and metadata when uploading them. The organization of related documents for each project or transaction will make it easier for users to find the information quickly. It is also essential to limit access to the minimum amount of data required and to update regularly the data room with any new or amended documents. The outdated or insufficient financial statements or contracts could mislead prospective investors and partners.
Additionally, founders shouldn’t share the same metrics for each VDR presentation. For instance when sharing engagement or retention information, it’s important to present the entire metric not only a subset of the most promising users. This practice can distract from the message you’re trying convey and could suggest that you don’t have a complete understanding of the data you’re sharing. Instead, you should share the information that is most important to your audience. This will keep your viewers interested and help them better be aware of the implications and results.