If you’re planning to close an investment round, you’ll have to show investors that you have your business in order. That means sharing documents that assess the strengths and performance of your business. A digital investor dataroom is among the most efficient tools to accomplish this. It allows for the safe and secure transfer of sensitive information as part of the due diligence process.
What documents should you include for investors who are in the dataroom? How can you tell if you are including too many or insufficient documents? Andrea Funsten is a partner at Basecamp Fund.
The answer is « It depends ». Although every business is unique but there are certain things that founders must be aware of prior to creating an online data room.
Generally, you should include the following documents:
1. Pitch Deck: This includes a high-level summary of the company’s thesis the company’s vision for its product and competitive landscape as well as the company’s traction. It should include an investor presentation draft and a rough timetable for capital raising.
2. Financial Information: This comprises both historical and projected financial statements as well as the reasons and sources behind these projections. You should also provide information regarding the legal structure of your company, including bylaws, articles of organization, business certificates, and tax information.
Some founders prefer to include other documents like executive summaries and internal reviews of the company’s performance. It’s important to remember that adding more documents can consume time and can slow down the due diligence process.
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