When you’re a startup preparing for a Series B funding round, you need to be organized and transparent with your potential investors. One of the best ways to do this is by setting up a well-structured virtual data room (VDR). A VDR is an online repository where you store and share all the critical documents that investors want to review during their due diligence process.

Here, we provide a comprehensive checklist of the key documents and information you should include in your VDR to streamline the due diligence process and present your company in the best possible light.

Company Overview

This is where you tell the story of your company. You want to provide a snapshot of your current status and your journey so far.

  • Business Plan: An updated business plan outlines your company’s vision, mission, and strategic goals. It helps investors understand your future direction.
  • Company Presentation: This is a detailed presentation (akin to a pitch deck) showcasing your company’s products/services, business model, market size, traction so far, team, and financial projections. It’s your chance to sell your vision and highlight your unique selling proposition.

Corporate Documents

These are the critical legal documents that provide a solid understanding of your company’s legal standing.

  • Incorporation Documents: Include all legal documents related to the establishment of your company. These documents provide evidence of your company’s legitimacy and structure.
  • Bylaws: The bylaws outline the rules that govern your corporate actions. They give investors insights into your company’s operational rules.
  • Shareholder Agreements: Existing shareholder agreements clarify the rights and obligations of your shareholders. These agreements can impact investors’ rights, so it’s crucial to share them upfront.
  • List of Shareholders: A document outlining the equity distribution among shareholders helps investors understand the current ownership structure of your company.

Financial Information

Financial information is crucial to investors as it provides a clear picture of your company’s financial health and future growth prospects.

  • Financial Statements: Your balance sheet, profit & loss statement, and cash flow statement should all be included to give a transparent view of your financial status.
  • Financial Projections: Your company’s financial outlook for the next several years is a key indicator of the potential return on investment for prospective investors. Make sure these projections are realistic and backed by data.

The process of setting up a virtual data room may seem daunting, but it’s essential for a successful Series B funding round. This checklist should help you ensure that your VDR is comprehensive, organized, and investor-friendly, increasing your chances of securing the investment you need to grow your business to the next level.

Please get in touch to arrange a demo of Ruby Datum, a leading Virtual Data Room platform.