Creating a Data Room for Investors

A data room for investors is a repository online of key documents that is used during due diligence before the start of a funding round, M&A transaction or other crucial business events. It streamlines the process by eliminating duplicate documents, lengthy emails and old versions sent out by mistake. Investors can access all the information they require using a simple dashboard.

It doesn’t matter if are raising Series A or Seed capital, establishing a dataroom is a best-practice that lets entrepreneurs concentrate more on developing their businesses. There are a variety of tools and platforms available to host an investor data room. It is important to select a platform that offers an intuitive interface for both you as well as the investors who are reviewing your material.

Included in a stage one investor data room should be your business’s bylaws as well as articles of organization. Also, include business certificates, tax ID numbers as well as any other relevant documents. In addition, it’s recommended to include any market research and competitive analysis that is relevant to your business.

Include your most recent pitchdeck in the data room. This will let investors quickly review the numbers and projections you have shared with them during your presentation and due diligence. You should also consider including an investor update form to provide investors with a quick overview of how your business is progressing.

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