Investors would like to have the most complete information about new ventures before investing. Investors will want to know everything, from competitor analysis to financials and more. The more organized the founders will be, the quicker and more simple it will be for investors to conduct due diligence. To facilitate the process you should create a dataroom for investors that contains all relevant documents and other information.
What Documents Should Be Included in an Investor Data Room?
While every startup is different however, a lot of the same documents are required to conclude a funding round. Some of the most important documents to include in an investor dataroom include pitch decks, the product plan, company bylaws, and articles of incorporation.
Investors should also review stock option agreements, non-compete agreements, and employee agreements. These types of documents are often very sensitive, and storing them in a secure, accessible online repository is the most effective way to ensure they are only shared with authorized third parties. Utilizing a virtual data room solution like CapLinked’s which includes digital rights management features http://vdrdata.com/the-difference-between-investment-banking-vs-brokerage lets users control how a document is used, ensuring only those who need access to it have access.
Including past investor updates in an online investor data room is a great way to show potential donors that you are transparent and dedicated to sharing information with them throughout the fundraising process. It can also help create trust, allowing you to proceed with your fundraising faster and more efficiently.