Due diligence for investors is an essential to any investment. The more prepared you are, the quicker your investors will be able to complete their review. An investor data room can make the process simpler for all parties.
LPs may require the full range of documents, such as legal contracts agreements with customers and suppliers intellectual property market research and cap tables, financials and more. A virtual data room allows you to share these documents with third parties and avoids the possibility of duplicate emails or obsolete copies being delivered in error. These documents can be exhibited in a structured easy-to-use investor dataroom to demonstrate professionalism and organization.
The investor data room is the ideal location to store and share your presentation deck (or investor pitch) for a prospective investor. The investor presentation is not solely a part of the due diligence supplementary however many founders do include it to give the context and help investors to access the information they require.
Some founders also use their investor data room as a storage space for various sets of data for different types of investors. Certain founders, for instance, have a “draft”, investor data https://dataroomsource.com/complete-guide-to-online-data-rooms/ room that they share with investors that have not yet committed and another set of documents to those who are about to sign a deal. This allows them to limit the amount of information they share and ensures the proper information is getting to the appropriate people.