Investors want to get the most complete information about startups before they invest. Investors want to know everything, from competitor analyses to financials and much more. The more organized the founders will be, the quicker and simpler it will be for investors to conduct due diligence. One way to make the process more efficient is creating a data room for investors that contains all the relevant information and documents.
What documents should be included in an investor data room?
While every startup is unique, many of the same documents are often required to complete a funding round. A few examples of the most important documents to be included in an investor data room are strategy documents including pitch decks, product plans, as well as company bylaws or articles of incorporation.
Furthermore, investors are likely to be looking to review agreements with employees, non compete agreements, and stock option agreements. These documents are often sensitive and it is best to keep them in a nimble, secure online repository. This will ensure that they are only shared with qualified third parties. CapLinked’s virtual data room that includes digital rights management that allow users to control how a document will be used. This ensures that only those who need it have access.
Include past investor updates in a data room online to show potential investors that you’re honest and will be able to share information with them during the fundraising process. It can also build trust, allowing you move forward faster with your fundraising.
dealroom platform fully automated investment management system