A data room is an online database that houses important documents for due diligence prior to the funding round, M&A deal or other important business events. It speeds up the process by removing duplicate files, long email threads, and obsolete versions that were sent out in error. Investors can also access the data they require through one dashboard that is easy to navigate.
It doesn’t matter if are raising Series A or Seed capital, establishing an investment data room is a smart idea that lets entrepreneurs concentrate more on the development of their business. There are a myriad of platforms and tools available to host an investor data room. However, it is essential to select one that provides a user-friendly interface for both the investor and the investors reviewing your materials.
In the stage one investor information room should be the company’s bylaws and articles of organization. Also, include business certificates, Tax ID numbers, and any other relevant documents. Additionally, it is recommended to include any market research or competitive analysis that’s relevant to your business.
Be sure to include your most recent pitch deck 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 may also want to include a short investor update to provide investors with a brief overview of the progress your company has made.