free of categorie

What Documents Should You Share in Your Investor Data Room?

A data room for investors is a central location where documents can be shared with potential investors or financial backers. It allows quick, easy and well-organized access to information without having to send multiple versions of the document via email. The data room is also secured, with features such as watermarks, expiring links, password protection, and granular permissions that make it easy to control access to sensitive information.

There are a variety of documents that should be shared with potential financial backers, from the basic documents like your term sheet or capitalization table and rounds of investment to more detailed due diligence data including the most current financial statements (both historical and projected) and human resources documentation such as founders’ resumes, employment contracts and employee stock options. It is also recommended to include technology-related documents like systems architecture, integrations, and the existing product documentation.

The more information you add the more detail you provide, the longer it will take investors to look over it. More importantly the more details you provide increases the risk of exposing or stealing sensitive information. To be able to move quickly, it is important to achieve a balance between your need for clarity and the amount of information you share.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.