A data room for investors is an online repository of crucial documents used during due diligence before a funding round, M&A transaction or other crucial business events. It simplifies the entire process by removing duplicate files, long email threads, as well as outdated versions that were sent in error. Investors can also 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, creating an investment data room is a smart idea that lets entrepreneurs focus more on the development of their business. There are a myriad of tools and platforms that can be used to create an investor data room, however it is vital to choose one that provides a http://dataroomnote.com/on-premises-vs-off-premises-database-the-difference/ clear interface for both you and investors who will be evaluating your material.
In a stage one investor data room should be your business’s bylaws and articles of incorporation. Also, include business certificates, tax ID numbers and any other pertinent documents. Include any relevant market research or competitive analysis that are relevant to your industry.
Most importantly, be sure to include your most recent pitch deck in the data room. This will let investors quickly review the numbers and projections you shared with them during your presentation and due diligence. You should also consider including a short investor update document to give investors a snapshot of how your business is performing.