Creating a Data Room for Investors
Investors want the most complete information about startups before they invest. They’ll want to see everything from competitor analysis to financials and more. The more organized founders will be, the faster and simpler it is for investors to conduct due diligence. One way to make the process go more smoothly is to create a data room for investors that includes all the relevant information and documents.
What documents should be included in an Investor Data Room?
While every startup is different, many of the same documents are usually needed for a successful funding round. A few examples of most important documents that must be included in an investor data room are strategy documents pitches, pitch decks and product plans, and bylaws or articles of organization.
Investors are also advised to go over stock option agreements as well as non-compete agreements, as well as employee agreements. These types of documents are typically very sensitive, and placing them in a safe, easily-navigable online repository is the best way to ensure they are only shared with approved third parties. CapLinked’s virtual room solution that includes digital rights management and allows users to decide the way a document is used. This ensures only those who require it have access.
Included past investor updates in an online investor data room is another great way to show potential backers that you are transparent and dedicated to sharing information with them throughout the fundraising process. It can also help build trust, allowing you move faster in your fundraising.