A data room is an online storage space which contains the most important documents needed to conduct due diligence prior an investment round, M&A deal or other critical business events. It simplifies the process by removing duplicate documents, lengthy email threads, and obsolete versions that were sent out in error. Investors can access the data they require using a simple dashboard.
It doesn’t matter whether you are raising Series A or Seed capital, setting up an investment data room is a smart idea that allows entrepreneurs to focus more on building their businesses. There are many tools and platforms that can be used to create an investor’s data room, but it is crucial that you select one that has a user-friendly interface for both you and the investors who will review your material.
In the stage one investor information room should be your company’s bylaws and articles of organization. Also, include business certificates, tax ID numbers and any other pertinent documents. Include any relevant market research and competitive analyses that pertain to your industry.
In addition, make sure to include your most recent pitch deck in the data room. This will allow investors to quickly reference the numbers and projections you’ve shared with them during your presentation and due diligence. You might also wish to include a brief investor update to provide investors with a summary of the progress your company has made.