Using an Investor Data Room to Facilitate Investor Due Diligence

Due diligence by investors is an crucial to any investment. The more prepared you are, the faster your investors can finish their review. A data room for investors can make the job a lot easier for everyone involved.

LPs will require a variety of documents including legal contracts, supplier and customer agreements as well as intellectual property information, market research, cap table, financials, and more. Using a virtual data room makes it easier to share these documents with third parties, and reduces the potential for duplicated emails or outdated copies being sent in error. The ability to share these documents in a logical and easily accessed investor data room also helps to demonstrate your organization and professionalism.

The investor data room is also an ideal place to save and share your presentation deck (or investor pitch) for a prospective investor. The investor presentation is not solely a part of the supplementary due diligence however many founders use it to provide information and allow investors to find the information they require.

Some founders utilize their investor data rooms to store different details for different types of investors. For instance, some founders have an investor data room that is a “draft” information, or investor data room that they share with investors that have not yet committed and another set of documents for those who are preparing to sign a deal. This allows them to www.dataroomsource.com/clinked-virtual-data-room-review/ limit the amount of information they provide at any given time and ensures that the correct information is distributed to the appropriate people.

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