Creating a Data Room for Investors

Investors are keen to know all the information they can gather about startups before investing. Investors will want to know everything from financials to competitor analysis and much more. The more organized founders can be, the quicker and easier it is for investors to conduct due diligence. To facilitate the process, create a dataroom for investors that contains all relevant documents and information.

What documents should be included in an investor data room?

Although every startup is unique however, the majority of the documents required to conclude an investment round are the same. Some examples of most crucial documents that should be included in an investor data room are strategy documents such as pitch decks, product plans, and bylaws, or articles of organization.

Investors will also want to review stock option agreements, non-compete agreements, and employee agreements. These documents are typically sensitive and it is best to keep them in a readily accessible, secure online repository. This will ensure that they are only shared with authorized third parties. Using a virtual data room solution such as CapLinked’s that has digital rights management capabilities allows users to control precisely how a document is used, making sure only those who need it are given access.

Include previous investor updates in a data room online to demonstrate potential investors that you are honest and will be able to share information with them during the fundraising process. It also helps create trust and help you progress your fundraising quicker and more efficiently.

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