An investor data room is a virtual repository of information that prospective financial backers require to evaluate your investor data room business’s funding request, confirm their agreement to the deal and justify their decision to the people they report to. It is impossible to fit all the necessary data points into the deck of pitches or an in-person meeting, and you certainly should not attempt to do this for the sake of protecting sensitive information.
A robust investor data room can make your company appealing to investors and make it easier to raise funds. Incorrect information or a poorly designed data room could derail your deal. In this article, we’ll look at what to include in your investor data room and how to structure it for maximum effectiveness.
In the due diligence phase, sophisticated investors will request information about your legal structure and articles of incorporation tax information and more. You may also be required to provide them with your company’s client and supplier contracts and intellectual property data such as market research and more.
Investors might also want to be aware of how you dealt with previous investors. This will show that you value your communication and transparency seriously, a major component of establishing trust the relationship you have with an investor.
You’ll also need to add the bios of your team and mention any notable business accomplishments. This is a great way to distinguish yourself from other startups looking for investment. But, you must be careful not overshare, as you don’t want any information that could reveal a competitor’s trade secrets or other sensitive information.