If you’re hoping to close an investment round, you need to be able demonstrate to investors that you have all the pieces of your business together. This means sharing documents that evaluate your company’s performance and strengths. One of the best methods to accomplish this is by using a digital investor data room, which allows for secure and efficient sharing of sensitive information during due diligence.
What documents should be included in a data room designed for investors? How do you tell whether you’re providing too much or not enough? Andrea Funsten is a partner at Basecamp Fund.
The answer is “It depends”. While every business is unique but there are certain things that all founders should take into consideration before creating an online data room.
Generally, you should attach the following documents:
1. Pitch Deck: This should include a concise summary of the company’s mission statement, product vision and competitive landscape as well as the company’s traction. It should also include an outline of the investor’s pitch and an approximate timeline of the capital raising process.
2. Financial Information: This comprises both historical and projected financial statements, as well as the reasoning and sources for those projections. You should also include information about the legal structure of your company like bylaws, articles, business certificates and tax information.
Some founders decide to include other documents, like executive summaries or internal reviews of the company’s performance. It’s important to remember that additional documents can take up time and could slow down the due diligence process.
