Notion is becoming the new standard for startup data rooms. Besides the pitch deck, founders need only a Notion data room with two levels: level 1 adds context and depth to the pitch deck topics, level 2 holds confidential material such as contracts and financial statements. Investors earn access step by step, through their own copy of the data room.
One of the most important and time-consuming things you must prepare before you start fundraising is your data room. This is THE place to get more detailed information about your company and plans.
I’m seeing more and more data rooms in Notion. And I like it. Notion gives you a lot of flexibility to present data in the most compelling and easy-to-digest way.
Based on the best practices I’ve seen as a VC, here is what I would do as a founder:
I’d focus on preparing two main information sources:
(1) The Pitch Deck.
(2) A modern data room in Notion.
In Notion, I’d first provide more context, deeper information, and details on all topics from the pitch deck. It will be much easier to update these data than with a detailed slide deck version, for example.
I’d differentiate the content in the Notion Data Room broadly into two primary levels:
Level 1: As explained above, I’d provide more context and more profound information on the main topics from the pitch deck and everything relevant to understanding your case, market, opportunity, etc., better.
Historically, many would not have considered this as part of a data room. I’ve seen startups preparing a detailed pitch deck version for this use case. Today, it’s much more convenient for everyone to do it in Notion.
Level 2: Detailed and more confidential information: customer contracts, employee contracts, balance sheets, and other financial statements, detailed information about customers, proprietary parts of your tech stack, etc. This is what many would have considered in the past as “the classic data room”.
You should not give investors access to everything on both levels from the start! Investors need to earn the right to get more information step by step. Confidentiality material should most often only be provided after a signed term sheet.
I’d then create a copy of your Notion Data Room for a given investor (so that not all VCs access the same Notion data room) and add new content pieces (e.g. from level 2) to the data room copies of those investors who earned it and get to a mature point in the process with you.
Notion is everything you need nowadays besides your pitch deck. There is no need for a separate FAQ doc or an extended pitch deck version. There is also no need for another data room tool for the level 2 stuff. I’d do everything within Notion. And as more and more founders do it that way, VCs are getting used to it.
Frequently asked questions
What should a startup data room contain?
Two levels. Level 1 gives more context and deeper information on the main topics from the pitch deck. Level 2 holds detailed, more confidential information such as customer and employee contracts, balance sheets and other financial statements, and proprietary parts of the tech stack.
Why use Notion for a data room?
Notion gives a lot of flexibility to present data in a compelling, easy-to-digest way, and it is much easier to update than a detailed slide deck version. It can replace a separate FAQ document, an extended pitch deck and another data room tool.
When should investors get access to confidential data room material?
Investors should earn more information step by step. Confidential material should most often only be provided after a signed term sheet.
Should all VCs see the same data room?
No. Create a copy of the Notion data room for each investor and add new content, for example level 2 material, only to the copies of investors who have reached a mature point in the process.
