What to Include in Your Investor Data Room

An investor data room is a virtual repository of the data that prospective financial investors need to review your company’s financing request, confirm their commitment to a deal and justify their decision to the people they report to. You cannot fit all the necessary data points into the deck of pitches or an in-person meeting, and certainly shouldn’t try to protect sensitive information.

A well-organized investor dataroom can help your company stand out to investors, and speed up the process of raising capital. However, the wrong information or an insufficiently structured data room could derail the deal. In this article, we’ll examine what to include in your investor data room and how to structure it for maximum effectiveness.

In the due diligence phase sophisticated investors will demand data related to your legal structure and articles of incorporation tax information, and more. You may need to give them information on the contracts your company has with customers and suppliers including intellectual property, market research and more.

Investors might also want to learn how you communicated with your previous investors. This information shows you take the importance of transparency and communication seriously. It’s a crucial element of establishing confidence with investors.

Finally, you’ll need to give the bios of your team and mention any notable accomplishments that are relevant to your business. This is a great way to stand out from other startups looking for investment. You should not share information in a way that is too public since it could expose the trade secrets of a competitor or other sensitive information.

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