It is essential that startups, whether they are raising angel capital or looking for venture capital, organize all documents in an encrypted investor data room. A good virtual dataroom can simplify the process of due diligence for investment and reduce time spent, while establishing a sense of credibility and transparency among potential investors.
A VC typically reviews a number of documents, ranging from financial projections and pitch decks to company-specific performance data and various other documents related to business. Startup founders should make sure to select documents that meet the criteria of VCs for investment. Too many documents can overwhelm prospective investors and dilute the impact of important information.
To ensure that all users enjoy an excellent experience, it is important that a VDR includes advanced features like a search function that allows users to locate files quickly and the Q&A section which allows for easy communication between all stakeholders. It is also essential that a VDR can handle large amounts of users without incurring additional charges.
Moreover, a VC should also have access to statistics, such as who has accessed what, and when, which helps provide context and insight for future discussions and investment decisions. Also, it’s helpful to choose an intuitive, professional-grade platform that offers free storage and the capacity to upload a large number of documents with watermarks. Carta Launch, an online document management system for early-stage founders, offers all of these features and more and is the best solution for managing the investor data rooms.