Due diligence by investors is a vital step in the investment process. It provides investors with the opportunity to look into the company’s finances and documents to assess risk and decide whether or not to invest in the company. A well-organized and organized data room can help expedite the process, reduce the risk of misunderstandings and mistakes, and increase confidence in the investor’s decision to proceed.

This article will provide few of the fundamentals that every startup should have in place prior to pitching to investors.

Investor Updates

Updates on dataroomnote.com/data-room-cost-and-its-relevance-with-service/ investor relations can be a great tool to show investors you are still executing your plan and moving towards your goals. This is particularly important in the beginning. This can also give them a sense of how you’ve progressed since they last saw you and help build trust.

IP Assets

Venture Capitalists and Angels are often interested in the intellectual property of a company which could play a major impact on its value. Display your IP by including patent filings, trademarks, and other pertinent data points even if they’re not directly related to the product you’re working on.

Cap Table

A clear cap table will show potential investors how much ownership you have and how it’s broken into pieces. Include your articles of incorporation which provide legal context for the structure of your business.