Creating a Data Room for Investors

26 Oct Creating a Data Room for Investors

Investors are keen to know all the information they can gather about startups before investing. Investors want to know everything, from competitor analysis to financials and more. The more organized the founders are, the easier it will be to conduct due diligence for investors. One way to make the process easier is to create a data room for investors that includes all the relevant documents and information.

What documents should be included in an Investor Data Room?

While every startup is different however, a lot of the same documents are usually needed to complete a funding round. A few examples of the most crucial documents that should be included in an investor data room are strategy documents such as pitch decks, product plans, as well as company bylaws or articles of incorporation.

Investors should also look over stock option agreements, non-compete agreements, and employee agreements. These kinds of documents are usually extremely sensitive, and storing them in a secure, easily-accessible online repository is the best method to ensure that they are only shared with reputable third parties. CapLinked’s virtual room solution, which includes digital rights management capabilities that allow users to control how a document will be used. This ensures that only those who require access to it have access.

including past investor updates in an online investor data room is another excellent way to show potential supporters that you are open and committed to sharing information with them throughout the fundraising process. It can also help build trust, allowing you to move ahead with your fundraising.

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