Investors want to know as much as they can about startups prior to investing. Investors want to know everything from financials to competitor analysis and more. The more organized the founders will be, the quicker and easier it will be for investors to conduct due diligence. One way to make the process run more smoothly is to create a data room for investors that includes all of the relevant documents and information.
What documents should be included in an Investor Data Room?
Although every startup is different but the majority of documents required for completing an investment round are the same. The most important documents to be included in an investor dataroom are pitch decks, a product plan, company bylaws and articles of incorporation.
In addition, investors often require a review of agreements with employees, non compete agreements and stock option agreements. These kinds of documents are usually extremely sensitive, and storing them stored in a secure and easily-accessible online repository is the best method to ensure that they are only shared with qualified third parties. CapLinked’s virtual room solution, which includes digital rights management capabilities and allows users to decide how a document http://vdrdata.com/dealroom-platform-review-fully-automated-investment-management-system/ 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 a effective way to demonstrate to potential supporters that you are open and willing to share information with them throughout the fundraising process. It also helps create trust and help you proceed with your fundraising quicker and more efficiently.