If you’re hoping to close a round of investment, you need to be able demonstrate to investors that you have all the elements of your business in place. This means sharing documents which assess your company’s performance as well as its strengths. One of the most effective methods to accomplish this is through a digital investor data room, which permits secure and efficient sharing of sensitive data during the due diligence process.
What documents should be included in a data room for investors? How do you tell whether you’re providing too much or too little? Andrea Funsten is a partner at Basecamp Fund.
The answer is “It depends”. While every company is unique but there are certain things that all founders should be aware of prior to creating an online data room.
It is recommended that you include the following documents.
1. Pitch Deck: This is a concise summary of the company’s mission statement and product vision, competitive landscape, and traction. It should also include a draft of the investor’s pitch and a rough timeline of the capital raising process.
2. Financial Information: This includes both projected and historical financial statements, as well as the reasons and sources behind these projections. It is also important to include information regarding the legal structure of your business like bylaws, articles, business certificates and tax information.
Some founders include additional documents, like executive summaries, or internal reviews of the performance of the company. It’s important to be aware that additional documents can consume time and can slow down the due diligence process.
https://dataspacelab.net/flexibility-with-caplinked-data-room/