What Documents Should You Share in Your Investor Data Room?

An investor data room is a centralized repository for sharing documents with potential investors as well as financial backers. It provides quick, easy, and organized access to the documents without the need to send multiple versions of the document via email. The data room is secure, with features such as watermarks and expiring links as well as password protection and the ability to grant permissions in a way that makes it easy to control access to sensitive information.

There are many documents that should be shared with potential financiers, ranging from the basics like your term sheet as well as capitalization tables and rounds of investment to more detailed due diligence data, including the most recent financial statements (both historical and projected) as well as human resources documentation such as founders resumes, employment agreements and employee stock options. You should also include technology-related documents, such as system architecture, integrations and the existing product documentation.

The more details you include the more detail you provide, the longer it will take investors to review. The more information you include more information, the greater the chance that sensitive information will be manipulated or compromised. To move quickly it is essential to strike a balance between the need for clarity and the amount of information you share.

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