Using an Investor Data Room to Facilitate Investor Due Diligence
Due diligence by investors is an vital to any investment. The more prepared you can be, the quicker your investors will finish their review. A data room for investors can make the process much simpler for everyone involved.
LPs might require various documents, including legal contracts agreements with suppliers and customers intellectual property, market research caps tables financials, cap tables and more. With the virtual dataroom, it’s easy to share documents with third party. This means that you can avoid sending duplicate copies or old versions. Providing these documents in a logical and easily accessed investor data rooms can also help to show your organization’s professionalism.
The investor data room is also the perfect location to save and give your presentation deck (or investor pitch) for potential investors. The investor presentation isn’t exclusively part of supplementary due diligence however, many founders incorporate it to provide an overview and help investors to access the information they need.
Some founders also choose to use their investor data room as a place to store various types of information for different kinds of investors. For instance, some founders have an investor data room that is a «draft», investor data room they only share with investors that have not yet committed and another set of documents to those who are about to sign an agreement. This allows them to restrict the amount of information they share and ensures the correct information is getting to the right people.
https://dataroomsource.com/complete-guide-to-online-data-rooms/