What to Include in Your Investor Data Room

A data room for investors is a digital space or physical place that holds all the data, information and documents required for due diligence in the event that an investment is sought by a startup. It can also be used to showcase the company’s expertise to create an image of trust with potential investors. It is crucial to remember that a data space must be secure and privacy-controlled since any leak of information could damage the company’s reputation. It must use sophisticated software to ensure that only authorized individuals have access to the sensitive documents. It is also essential to choose a dataroom that provides real-time analysis of the way documents are viewed.

What Should You Include in Your Investor Data Room

You’re likely to have conversations with investors or VC firms in which they require more information than what’s in your deck. They might also ask access to your data room as part of their due diligence.

Investors want the supplementary due diligence data you’ve provided along with any additional research they’re doing including market research reports from firsthand sources and information on the market that is available to the public. They’ll also be looking over your financials, including your historical performance and forecasted future performance.

Include a section that explains how much and why you have progressed. You should include the full list of your management team, as well as their salaries and job description. Also, you’ll want provide a complete legal section with updated and revised articles of incorporation.