Investors require a lot information to make an educated investment decision. The more information they have, the quicker they can review it and reach a decision. You must have all the important documents in your data area before you begin to talk to investors (or as early https://dataroomproducts.com/ as you can).
In addition to the key investment documents you’ll need for any due diligence, founders should include their most recent investor presentation, basic financials for past performance and projections, cap table, and company organization/formation documentation (including business certificates, articles of incorporation, tax information, etc.). These documents should be easily accessible in the investor’s data room to allow investors to quickly and effectively create a memo or have a conversation with their partners, which could result in an offer.
Another useful document to include in your investor data room is an analysis of deal attribution that displays how well your team has invested in other companies, helping to convince potential LPs that you’re capable of making the appropriate investments. It is possible to include additional details such as intellectual property information, contracts with suppliers and customers marketing research, and much more.
You can add documents to your data room at any time, but it’s important to only grant access to investors who is serious about committing to an agreement in a termsheet. You may slow down the process in the event that you allow an investor access to your data room before he’s prepared. They may even decide not to invest.
