Investors want to get as much as they can about startups prior to investing. Investors will want to be aware of everything from financials to competitor analyses and much more. The more organized the founders are the more easy it is to conduct due diligence for investors. To facilitate the process make a dataroom available to investors, containing all the necessary documents and details.
What Documents Should Be Included in an Investor Data Room?
Although every startup is unique but the majority of documents required for completing the funding round are the same. A few examples of most important documents that should be included in an investor data room are strategy documents including pitch decks, product plans, and bylaws or articles of organization.
Additionally, investors will often want to review employee agreements, non compete agreements and stock option agreements. These kinds of documents are typically very sensitive, and having them in a safe, easily-navigable online repository is the best method to ensure that they are only shared with approved third parties. Using a virtual data room solution such as CapLinked’s that has digital rights management features allows users to control how a document is used, ensuring only those who need it are given access.
Including past investor updates in an online investor data room is another great way to show potential backers that you are open and willing to share information with them throughout the fundraising process. It can also help increase trust in the process and allow you to move forward with your fundraise faster and more efficiently.