Step 1 - Choose How to Share With Investors

<aside> 📖 A Data room is a cloud based file of documents that you share with an investor before and after they make an investment into your company. It allows the investor to know exactly about the businesses financial health by getting a look under the hood. It is fairly standardised and most VCs will expect the same series of documents.

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You can use lots of platforms to share your information

• Google Drive
• Drop Box
• DocuSend
• Vitrium
• Notion

The key is to choose a platform that allows you to have control over who accesses the data room and at what times.

Step 1 - Make a Data Room to Share BEFORE term sheet

Checklist:

• [ ] Historical Financials (P&L, Balance sheets, Cash Flow)
  • [ ] Ask for revenue recognition policy (when cash received, or when service rendered)
  • [ ] Check for any liabilities
• [ ] Revenue Breakdown (by recurring customers, upgraded customers, new customers)
• [ ] Usage data
• [ ] Customer Register (provide names of customers on a quarterly basis, who are new, who have upgraded who have churned, and who has downgraded)
• [ ] Capitalisation Table
• [ ] Business Forecast (P&L - 2 years in advance)
• [ ] Sales Pipeline