A dataroom for fundraising is an online repository that allows startups to securely share documents with investors. A data room can be a more secure alternative to emailing or using file-sharing service, as it lets all parties control access to documents, security and retention. Startups that seek investment often utilize a crowdfunding data room to ease due diligence with potential VC partners, speed up the fundraising process, and impress investors with their transparency and professionalism.

While every venture capital investor has its own requirements, the majority will want to see similar information. The founders should put a premium on including important documents like the business plan pitch deck, the current financial statements (profit and loss, balance sheet, and cash flow statement), market analysis, cap table, team profiles as well as references from customers and referrals, and amended and restated articles of incorporation.

Investors also need to understand the way your startup will develop with the funds they are providing. This is why the funding data room must include a roadmap or plan that outlines your plan for product development and how you plan to use the capital.

Select a provider of virtual datarooms with a customized branding and a user-friendly administrator dashboard. Also, you should fundraising data room choose a platform that allows drag-and drop uploads, bulk actions and interactive elements. Select an online repository which offers a free trial or allows users to create virtual data rooms to test the service.