Investors are interested in all the information they can get their hands on about startups prior to investing. Investors will want to know everything from financials to competitor analysis and much more. The more organized founders can be, the quicker and easier it will be for investors to conduct due diligence. One way to help the process easier is to set up a data room for investors that includes all relevant documents and information.
What Documents Should Be Included in an Investor Data Room?
Although every startup is unique However, the majority of documents are usually needed to complete a fundraising round. Some of the most important documents to be included in an investor dataroom are pitch decks, product plan, company bylaws and articles of incorporation.
Investors will also want to review stock option agreements, non-compete agreements, and employee agreements. These documents are typically sensitive and Data room for investors should be stored to store them in a easily accessible, secure online repository. This will ensure that they are only shared with qualified third parties. CapLinked’s solution for virtual data rooms that includes digital rights management which allow users to control the manner in which a document is used. This ensures that only those who require access to it are granted access.
Incorporating past investor updates into an online investor data room is another effective way to demonstrate to potential supporters that you are open and willing to share information with them throughout the fundraising process. It also builds trust, which will allow you to move forward with your fundraising.