A business valuation as well as a data room are integral to due diligence. This is, in fact, the most important stage in the M&A procedure. A well-organized and complete virtual data room could be the difference between closing an acquisition or not, because it gives investors the confidence that there won’t be any hidden surprises.
The business valuation with data room contents of your data room must include the essential documents that are required for most fundraises: pitch deck, basic financials (cash metrics revenue projections, revenue projections and a cap table) along with past investor updates, and an updated list of happenings and commitments. Your VC will want to examine all of your legal documents including your term sheet, agreements with other investors, existing loan facilities as well as the most recent documents of your company, such as an original copy of the amended or restated articles as well as board resolutions.
Your competitive analysis is an important document you should share. It shows that you understand your market and your product is in a strong position. References and customer reviews will assure buyers that your product is well-positioned.
It is also essential to update your data space regularly to show you are committed towards transparency and communication. This could take the form of a quarterly or monthly report that highlights the most important highlights as well as any important metrics. Some companies even share a KPI dashboard, which demonstrates that they are committed to ongoing engagement with their investors.