For startup founders, due diligence is an essential step on their way to raising capital. In contrast to sharing files via email, a virtual data room allows founders to have total control over the information they give investors. Folderit lets startup founders make sure investors only receive the documents they need.

The contents of an investor data room for startups differs based on the industry. However, the majority of them contain documents that are relevant to due diligence. For example an organization that is a life science one must include clinical trial results as well as HIPAA compliance information. These types of documents are often too large to be sent via email, so using a virtual data space is the best way to share them with investors.

Investors conduct due diligence in order to evaluate a startup’s potential and minimize their risk. having all the information they need in one place makes the process easier and makes it easier for them to make a decision. It also shows that founders are taking their investors time seriously and that is a major issue for a lot of backers.

Due to the fact that investors have limited budgets, it is essential that startups choose a provider who offers a flat-fee structure. Startups that are still fundraising can benefit from a per-page model for text documents. This is cheaper than a subscription model that offers unlimited storage and users. A trial offer is a great way entrepreneurs to test their service, practice reenacting presentations with investors and outline their document’s layouts.