The due diligence of investors is vital to any investment. The more prepared you are, the faster your investors can complete their assessment. A data room for investors will make the task easier for all parties.
LPs will require a variety of documents including legal contracts, customer and supplier agreements as well as intellectual property information, market research, cap table financials, and much more. Using a virtual data room makes it easy to share these documents with third parties, and reduces the possibility of sending duplicate emails or old copies being delivered in error. These documents can be presented in a well-organized, easily navigable investor datarooms that demonstrate professionalism and organization.
The investor data room is an ideal place to save and give your presentation deck (or investor pitch) for potential investors. Although the investor presentation itself isn’t part of the supplementary due diligence data, many founders include it to provide context and ease the investor’s access to information they need.
Some founders utilize their investor data rooms to store different information for different types investors. For example, some founders have a «draft» investor data room which they only share with investors who haven’t yet signed an offer, and another set of documents for those who are in the process of signing a contract. This enables them to control the amount of information they disclose at any given point and ensures that the correct information is shared with the right people.
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