A data room is an online database that holds the essential documents http://dataroomnote.com/ required for due diligence prior to the funding round, M&A deal or other crucial business events. It speeds up the process by removing duplicate files, long email threads and outdated versions sent out by mistake. Investors can access the data they need through a simple-to-use dashboard.
It doesn’t matter whether you are raising Series A or Seed capital, setting up an investor data room is a good idea that lets entrepreneurs focus more on building their businesses. There are a myriad of tools and platforms that can be used to create an investor data space, however, it is essential that you select one that provides a clear interface for both you and investors who will be reviewing your data.
The most important documents to include in a stage 1 investor data room are your company’s bylaws, articles of organization or business certificates, as well as Tax ID numbers. Also, it’s an excellent idea to include any market research and competitive analysis that’s pertinent to your business.
Most importantly, be sure to include your most recent presentation deck in the data room. This will let investors quickly review the numbers and projections that you have shared with them during your presentation and due diligence. You may also want to include a short update for investors to provide investors with a brief overview of the progress your company has made.