A data room for investors is a central repository where documents can be shared with potential investors or financial backers. It allows for rapid, efficient and organized access to documents without the need to send multiple versions of the same document via email. The data room is secure thanks to features such as expiring links as well as password protection, watermarks and granular access rights.
It is necessary to share many documents with potential financial backers. These include the essentials such as your capitalization table, termsheet and investment rounds, as well as more in-depth due diligence documents, such as the most current financial statements (both historic and projected) and human resource documentation, like founders’ resumes as well as employment agreements and employee stock option plans. You should also include technology-related documents like the system’s architecture, integrations and the existing product documentation.
The more information you include the more information you include, the longer it will take for investors to go through. In addition the more data you include, the greater the risk of compromising or misusing sensitive information. To move quickly it is https://dataroomtools.com/ essential to keep a balance between the need for clarity and the amount of information you share.