What Documents Should You Share in Your Investor Data Room?

A data room for investors is a central location where documents can be shared with potential investors or financial backers. It allows for a quick, simple and organized access to the information without having to send multiple versions through email. The data room is secured with features such as expiring links and password protection, as well as watermarks and granular access rights.

It is necessary to share numerous documents with potential financial investors. These include the essentials such as your capitalization table, termsheet and investment rounds and more specific due diligence data, such as the most recent financial statements (both historic and projected) as well as human resource documents, including founders’ resumes along with employment agreements and employee stock option plans. You should also include technology-related documents like systems architecture, integrations, and existing product documentation.

The more information you include the more information, the due diligence process longer it will take for investors to read. The more information you include more information, the greater the chance that sensitive information will be manipulated or compromised. It is important to ensure that you are clear by limiting the amount of information you provide to move forward quickly.