Creating a Data Room for Investors

A data room for investors is a repository online of key documents that is utilized during due diligence prior to an investment round, M&A transaction or other business-critical event. It simplifies the entire process by eliminating duplicate documents, lengthy emails threads, and outdated versions that were sent in error. Investors can access the data they require through an easy-to-navigate dashboard.

It doesn’t matter if you are raising Series A or Seed capital, creating a dataroom is a best-practice that allows entrepreneurs to concentrate more on the development of their business. There are a variety of tools and platforms that can be used to create an investor data room however it is vital to choose one that provides an intuitive interface for both you and investors who will be looking over your data.

Some of the most important documents to include in your stage 1 investor data room are your company’s bylaws, articles of organization, business certificates and Tax ID numbers. Include any market research or competitive analysis that are relevant to your business.

Include your most recent pitchdeck in the data room. This will let investors quickly refer to the numbers and projections you shared with them during your presentation and due diligence. It is also advisable to include an update to investors to give investors a snapshot of how your company is performing.