Do You Need a Data Room for Seed Fundraising?
Hello everyone. Today, we’re talking about if you need a data room for your seed fundraising.
The answer is yes, you should create a data room, but no, you shouldn’t share it with potential investors.
Your data room should include the documents an investor might expect like: projections, sales materials, corp doc, employee & customer contracts, IP agreements, etc. But when a potential investor asks if you have a data room, respond by asking what documents they want to see. Don’t share the entire data room with them immediately.
This is because many investors will happily download your documents, keep the data for their research, and have almost no intention of ever investing. Make them earn that data by at least stating what they need.
Thanks a lot for watching, and best of luck out there.