What to Include in Your Investor Data Room?

Maintaining accurate and up-to-date data is vital to attracting investors. It is important to keep these materials up to date, not only for the round you are raising but also for future rounds.

Tips to Help You Find an Investor and Raise Funding

A big problem in terms of possible leakage is various kinds of contractors and service organizations. Many of them have access inside the company’s corporate network. The threat of data leakage can come from both unscrupulous employees of these organizations, and from hackers who can penetrate your company by hacking the counterparty’s IT infrastructure. Building relationships with such organizations to ensure the required level of their compliance with information security requirements is a separate large activity of the information security service.

The most important advantage that you get with a virtual data room is complete control. Neither FTP nor public storage will be able to provide you with such an opportunity. Using VDR protection technology, you have the power to revoke the right to access a document even after it is already outside the corporate network. You can learn more about the functionality of the room during the free trial period. Leave a request on the site and take an important step to ensure the information security of your company.

Among the main tips for finding an investor in your virtual data room are:

    1. Make a long list. At this stage, be sure to do your homework, generate a list of potential investors, highlight those who are actively investing at your stage or in your sector, look at who recently launched funds, or make a statement that they are starting to develop as a business angel.
    2. Create an intro funnel. Of course, warm intros work best. If possible, try to find a close enough acquaintance who can introduce you to your target investor. But cold exits can also be effective.
    3. End the investor conversation in such a way that they want to continue it with you. It would be possible to title even easier – answer! It often happens that you are asked to consider a project, and you give your thoughts about the risks and say that the project is not suitable, and your interlocutor disappears.

The Most Important Aspect to Include in Your Investor Data Room

With cyberattacks on the rise, companies need some form of virtual data room to protect their interests. There are many tools available to verify customer data online with their consent. Organizations using this extra layer of verification can even weed out scammers and catch identity thieves before they do any damage.

Take a look at the main aspects that should be included in the investor data room:

      1. First refusal and co-sale agreements.
      2. Customer contracts.
      3. Amended and restated articles of incorporation.
      4. Voting agreements.
      5. Investor rights agreements.
      6. Board of directors’ materials.
      7. Board meeting minutes.
      8. Partnership agreements.

It is a well-known rule that investor data room protection should be multi-layered. This means that in order to prevent unauthorized access to the database or its copying, it is necessary to use a set of measures. The more protection levels, the more efforts, and software tools will be needed for an attacker to crack. And a multi-level security system should begin with user-level control. Database protection at the initial stage consists of the ability to distribute processes, privileges, and access rights.

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