If you are planning to close an investment round, you will need to show investors you have your business in order. This involves sharing documents that measure your company’s performance and strengths. A digital investor dataroom is one of the best tools to use for this. It allows for the safe and efficient exchange of sensitive data as part of the due diligence process.
What kind of documents should be included in a data room designed for investors? What can you tell if you are including too many or insufficient documents? We spoke to Andrea Funsten, a partner at Basecamp Fund, to find out.
The answer “It depends”. Although every business is unique, there are a few points that entrepreneurs should be aware of prior to establishing an online data room for investors.
It is recommended that you include the following documents.
1. Pitch Deck Pitch Deck: This is a top-level overview of the company’s mission statement and vision. It also includes the company’s traction, competitive landscape and an overview of the competitive landscape. It should also include an investor presentation draft and a rough timetable for the capital raising process.
2. Financial Information: This includes both projected and historical financial statements, as well as the reasons and sources behind the projections. You should also provide information about the legal structure of your company including bylaws, articles of organization, business certificates, and tax information.
Some founders include additional documents, like executive summaries, or internal reviews of the performance of the company. It is important to remember that adding additional documents may take up valuable time, and can slow down the due diligence process.
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