A data room for investors is a digital space or physical place that holds all the data, information, and documents relevant to due diligence when a startup seeks investment. It can be used to demonstrate the company’s expertise and create an image that is positive with potential investors. The data room should be secure and privacy controlled since any leakage of information could damage the reputation of the business. It should make use of advanced software to ensure that only authorized personnel are able to access the sensitive documents. It is also important to choose a dataroom that offers real-time analytics of how documents are viewed.
What should you include in your Investor Data Room
If you’re pitching your check this business to investors or a VC firm, you’re probably to be in discussions where they’ll ask for more information than what is contained in your deck. They may then request access to your data room as part of their due diligence.
Investors will also want to look over any additional research you do, such as market research reports or public information. They will also review your financials, including your historical performance and forecasted future performance.
It is important to include a section that explains how much you’ve grown, and the reasons for it. Also, you should include a full management team list, and provide their salaries and job descriptions. Also, you’ll want provide a complete legal section, with amended and restated articles of incorporation.