Due diligence by investors is an essential to any investment. The more prepared you are, the faster your investors will be able to finish their assessment. A data room for investors makes the task a lot simpler for everyone involved.
LPs may require many different documents, including legal contracts agreements with suppliers and customers intellectual property, market research, cap tables, financials and more. By using the virtual dataroom, it is easy to share documents with third party. This also makes it impossible to send duplicate copies of documents or those that are out of date. These documents can be displayed in a well-organized easy-to-use investor datarooms to show professionalism and organization.
The investor data room is the perfect place to save and give your presentation deck (or investor pitch) for investors who are interested in investing. While the investor presentation isn’t strictly part of the supplementary due diligence information, many investors include it as a way to give context and facilitate investors’ access to the information they need.
Some founders also choose to make use of their investor information room as a place to store various sets of information for different kinds of investors. For example certain founders have a “draft” investor data room that they share with investors who haven’t yet signed a commitment and another set of documents for those who are near to concluding a deal. This lets them control how much information they share and ensures that the appropriate information is being shared with the right people.
