A data room is a repository online that houses important documents for due diligence prior to an investment round, M&A deal or other important business events. It streamlines the entire process http://dataroomnote.com/on-premises-vs-off-premises-database-the-difference/ by eliminating duplicate files, long email threads, as well as outdated versions that were sent in error. Investors are able to access all the information they need through a simple-to-use dashboard.
When you’re raising an initial or Series A round, establishing a data room is an ideal practice that can reduce friction in the investment process and allows entrepreneurs to focus on building their companies. There are a myriad of tools and platforms that can be used to host an investor data room. However, it’s important to choose one that offers an intuitive interface both for you and those who will be looking over your materials.
In a stage one investor data room should be the company’s bylaws and articles of organization. Also include business certificates, tax ID numbers and other pertinent documents. Include any market research and competitive analyses that pertain to your business.
Include your most recent pitchdeck in the data room. This will allow investors to quickly reference the numbers and projections you shared with them during your presentation and due diligence. You might also want to include a brief investor update to provide investors with an overview of the company’s progress.