Creating a Data Room for Investors

A data room for investors is an online repository of crucial documents used to conduct due diligence prior to a funding round, M&A transaction or other critical business event. It helps streamline the process by eliminating duplicate files, long emails and old versions that were sent out in page error. Investors are able to access the information they require through one dashboard that’s easy to navigate.

It doesn’t matter if you are raising Series A or Seed capital, establishing an investor data room is a good idea that allows entrepreneurs to concentrate more on developing their businesses. There are a myriad of tools and platforms that can be used to host an investor data space, but it is important to choose one that provides an intuitive interface for both you and the investors who will review your materials.

Some of the most important documents that should be included in a stage 1 investor data room include your company’s bylaws, articles of incorporation as well as business certificates and Tax ID numbers. In addition, it’s recommended to include any market research and competitive analysis that’s pertinent to your business.

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