Investor due diligence is a critical step in the investment process. Investor due diligence is an opportunity for investors to look into the company’s financials and documents, to evaluate the risk and decide if they would like to invest. A well-prepared and organized data room can help expedite the process, decrease the likelihood of misunderstandings or miscommunication, and increase confidence in the decision of the investor to take the next step.
This article will discuss a few of the most important things that all startups should have prepared before pitching to investors.
Investor Updates
Investor updates are an excellent way to show investors that you’re still executing on your plan and working towards your goals, particularly in the early stages of fundraising. This can also help investors to understand how far you have made progress since your last meeting and create confidence.
Intellectual Property Assets
Angels and Venture Capitalists are usually interested in the intellectual property of a business which could play a major impact on its value. Include patents, trademarks and other pertinent data, even if it’s not directly related to your product.
Cap Table
A clear table of your cap shows potential investors the amount of ownership you own and how it’s broken into read review pieces. It’s recommended to include your articles of association, which could provide legal context for your company’s structure.