A data room for investors is an online repository of crucial documents used to conduct due diligence prior to an investment round, M&A transaction or other crucial business events. It simplifies the process by eliminating duplicate files, long email threads, and obsolete versions that were sent out in error. Investors can also access the information they need through one dashboard that’s easy to navigate.
It doesn’t matter whether you are raising Series A or Seed capital, creating an investment data room is a smart idea that allows entrepreneurs to concentrate more on building their businesses. There are a variety of platforms and tools available to host an investor dataroom. It is important to select a platform with an intuitive interface for both the investor and the investors who are reviewing your material.
In a stage one investor data room should be the company’s bylaws and articles. Also include business certificates, Tax ID numbers as well as any other relevant documents. In addition, it’s a good idea to include any market research and competitive analysis that is pertinent to your business.
Include your most recent pitchdeck in the data room. This will allow investors to quickly access the numbers and projections you have presented during your presentation as well as due diligence. You may also want to include a short update for investors to give investors an overview of the progress your company has made.