A data room for investors is a digital or physical space that contains all the data, information and documents necessary for due diligence when an investment-minded startup is seeking funding. It is also used for showcasing the startup’s knowledge to build an image that is appealing to potential investors. It is important to note that a data room must be secured and secure since leaks of data could cause harm to the reputation of the business. It must use sophisticated software to ensure that only those who are authorized can access the sensitive documents. It is also recommended to choose a data storage facility that offers real-time analysis of how documents were viewed.
What Should You Include in Your Investor Data Room
There will be discussions with investors or VC firms where they will request more information than what’s in your deck. They could also request access to your investor’s data room for due diligence.
Investors will also want review any additional research you do, such as market research reports, or public information. Investors will also be able to review your financials, including past performance and projected performance.
Include a section detailing how much and how you have developed. It is important to include the complete list of your management team including their compensation and job descriptions. In addition, you’ll need to provide a complete legal section with updated and revised articles of incorporation.