Creating a Data Room for Investors

Investors are interested in all the information they are able to gather about startups before investing. Investors will want to be aware of everything from competitor analyses to financials and much more. The more organized founders can be, the faster and simpler it will be for investors to conduct due diligence. To make the process more efficient make a dataroom available to investors that contains all relevant documents and details.

What documents should be included in an investor data room?

While every startup is unique however, the majority of the documents needed to complete an investment round are the same. A few examples of most crucial documents that should be included in an investor data room are strategy documents, pitch decks, product plans, and company bylaws, or articles of organization.

In addition, investors often require a review of agreements with employees, non compete agreements and stock option agreements. These types of documents are usually very sensitive, and storing http://vdrdata.com/ them stored in a secure and easily-accessible online repository is the best way to ensure they are only shared with approved third parties. Using a virtual data room solution like CapLinked’s that includes digital rights management features lets users control how a document is used, making sure only those who need it are given access.

Include previous updates from investors in a data room online to demonstrate potential investors that you’re honest, and that you will communicate with them throughout the fundraising process. It also helps create trust and help you move forward with your fundraise faster and more efficiently.