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 a quick, streamlined and well-organized access to the data without the need to send multiple versions via email. The data room is safe with features such as expiring links and password protection, as well as watermarks and granular authorizations.

You will need to share many documents with potential financial investors. These include the essentials such as your capitalization table, termssheet and investment rounds, and more specific due diligence information, like the most recent financial statements (both historic and projected) and human resource documentation including founders’ resumes or employment agreements, as well as employee stock option plans. You should also include technology-related documents such as integrations, system architecture, and documentation for your current product.

The more information you include the more you include, the longer it will take for investors to review. Furthermore the more data you include increases the risk of exposing or stealing sensitive information. It is important to balance the need for clarity by limiting the amount of information you share to get your work done quickly.

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