What Documents Should You Share in Your Investor Data Room?
A data room for investors is a central repository for documents can be shared with potential investors or financial backers. It allows for rapid, easy and organized access to information without having to send multiple versions of the same document via email. The data room is secure with features like expiring links as well Continue as password protection, watermarks, and granular permissions.
There are many documents that should be made available to prospective financial backers, from the basics like your term sheet as well as capitalization tables and investment rounds to more detailed due diligence data, including the most recent financial statements (both historical and projected) as well as human resources documentation like founders resumes, employment contracts and employee stock options. You should also include technology-related documents including integrations, system architecture, and existing product documentation.
The more you include the more information you include, the longer it will take investors to read. Furthermore the more data you include, the higher the chance of compromising or misusing sensitive information. To be able to move quickly, it is important to find a balance between the need for clarity and the amount of information you share.