Investors want to know as much information as possible about startups before they invest. Investors will want to be aware of everything from competitor analysis to financials and much more. The more organized the founders are the more easy it is to conduct due diligence for investors. One way to make the process go more smoothly is to create a data space for investors that has all the relevant information and documents.
What Documents Should Be Included in an Investor Data Room?
While every startup is unique but many 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 http://vdrdata.com/dealroom-platform-review-fully-automated-investment-management-system/ incorporation.
In addition, investors often want to review agreements with employees, non compete agreements, and stock option agreements. These documents are usually sensitive, and it is recommended to keep them in a easily accessible, secure online repository. This will ensure that they are only shared by qualified third parties. CapLinked’s solution for virtual data rooms that comes with digital rights management features, allows users to control the manner in which a document is used. This ensures only those who require access to it have access.
Included past investor updates in an online investor data room is a effective way to demonstrate to potential donors that you are transparent and dedicated to sharing information with them throughout the fundraising process. It can also help build trust in the process which will allow you to proceed with your fundraising faster and more efficiently.