A data room is an online database which contains the most important documents needed for due diligence prior to the launch of a funding round, M&A deal or other business-critical events. It speeds up the process by eliminating duplicate documents, lengthy email threads, and outdated versions sent out by mistake. Investors have access to all the information they require via an easy-to-use dashboard.
If you’re looking to raise the seed or Series A round, establishing the data room is a great method to reduce the stress of investing and allows entrepreneurs to focus on building their businesses. There are a variety of tools and platforms that can be used to host http://dataroomnote.com/boosting-investors-confidence-with-ipo/ an investor data space, however, it is essential that you select one that has a user-friendly interface for both you and investors who will be looking over your data.
Included in a stage one investor data room should be your company bylaws and articles of incorporation. Also, include business certificates, Tax ID numbers as well as any other relevant documents. Include any market research and competitive analyses that pertain to your business.
Include your most recent pitchdeck in the data room. This will enable investors to quickly reference the numbers and projections you have shared during your presentation and due-diligence. You should also consider including an investor update form to provide investors with an overview of how your business is doing.