What Documents Should You Share in Your Investor Data Room?
A data room for investors is a central location where documents can be shared with potential investors or financial backers. It provides quick, streamlined and organized access to information without the need to send multiple versions of the same document by email. The data room is protected, with features like watermarks and expiring links as well as password protection, and granular permissions that make it easy to control access www.dataroomtools.com/benefits-of-an-investor-data-room/ to sensitive information.
There are many documents that need to be shared with potential financiers, ranging from the basics like your term sheet capitalization table, capitalization and rounds of investment to more detailed due diligence documents, such as the most recent financial statements (both historical and projected) as well as human resources documentation like founders resumes, employment agreements and employee stock options. Include documents related to technology, such as integrations, system architectures, and the existing product documentation.
The more information you add the more detail you provide, the longer it will take investors to review. The more information you share more information, the greater the chance that sensitive information will be abused or compromised. It is important to balance the need for clarity by limiting the amount of information you provide to be able to move quickly.