Data rooms are thought as a beneficial tool for companies being acquired, but provide a wealth of benefits to companies raising capital. As a central hub for sharing, organising, and managing the crucial documents that investors will be looking over during their due diligence process A virtual Data Room allows you to speed up the fundraise and increase confidence in the performance of your business.
It can be challenging for entrepreneurs to determine what details they would like to include in their investor data room. While the needs of every business may differ, the majority of investors will require similar things. We’ve put together this list of documents that you should include in your investor data rooms and also some suggestions on how to organise them.
A simple PDF of your pitch, which you can keep in data rooms the same folder with your other documents, is an excellent way to quickly engage investors. This is also a great way to show investors that you care in ensuring transparency and communication with investors.
By including past investor updates, it shows that you’ve always considered their feedback and are willing to share your experiences with them even when the results haven’t been great. Alongside providing proof of your ability to navigate through a difficult time These updates will show the importance of your relationship with backers and build confidence in the investment process. The tracking function in your Data Room allows you to observe which investors are interacted with the documents, as well as the amount of time they spend in each folder. This gives you an insight into the level of commitment they have to investing, and provides you with the data that you need to make a decision.