Data rooms are reputed to be a valuable tool for companies that are getting acquired, but they also provide a wealth of benefits to companies seeking capital. A virtual Data Room is a central platform that lets you organize share, manage, and store the critical documents an investor will want examine as part of their due diligence. This can accelerate the process of fundraising and give investors more confidence in the performance of your company.
Choosing what to include in your investor data room is a daunting task for founders. While the needs of every business will differ slightly, the majority of investors will require the same things. To help you start, we’ve put together an overview of common documents to include in your investor data room, together with suggestions for how to arrange the documents.
A short introductory pitch deck – a PDF of your pitch which can be stored in the same location as the other documents you have – is an excellent way to quickly engage with investors. It’s also an excellent opportunity to demonstrate that you take the importance of transparency and communication with investors seriously.
Include past updates from investors to show that you have always considered their feedback and are willing to discuss with them, even if results were not great. In addition to proving evidence of your ability to manage through difficult times and provide proof of the depth of your relationships with your investors and establish confidence in the investment process. Tracking functionality in your Data Room allows you to keep track of which investors are interacting with the documents, and the amount of time they spend in each folder. This will give you a better idea of the level of commitment investors have to investing and give you the information you need to make an informed choice.
