Data rooms are well known as a way to add value to companies that are acquired However, they also bring huge benefits to companies who are raising capital. A virtual Data Room is a central center that allows you to organise, share, and manage the important documents that investors is likely to need to examine during their due diligence. This can speed up the fundraising process and provide investors with confidence in the performance of your business.
Deciding what to include in your investor data room can be a difficult task for founders. While the requirements of every company are different, most investors are looking for the same things. To make it easier for you to start, we’ve put together an overview of common documents to include in your investor data room, together with suggestions for how best to organise them.
A simple PDF of your pitch, which you could keep in the same folder as the rest of your documents, is a fantastic method to attract investors quickly. This is also a great way to show investors that you’re serious about investor communication and transparency.
The inclusion of past investor updates proves that you’ve always taken their feedback into account, and are willing to share your experiences with them even when the results have been difficult. These updates not only demonstrate your ability to cope with a challenging time but also establish confidence with your investors. Having tracking functionality in your Data Room helps you to track which investors are engaged with the documents and the time they’re spending in each folder. This gives you an insight into how serious they are about investing, and provides you with the data that you require to make a decision.