A data room for investors is an online repository of essential documents that can be used during due diligence before a funding round, M&A transaction or other business-critical event. It simplifies the entire process by eliminating duplicate files, long emails threads, as well as outdated versions that were sent in error. Investors can also access the data they require through a single dashboard that is easy to navigate.

If you are raising either a Series A or a seed round, creating an investor data room is a good practice that reduces the amount of work involved in investing and lets entrepreneurs focus on the growth of their business. There are many tools and platforms that can be used to host an investor data room but it is crucial to select one that offers a simple interface for both you and the investors who will be evaluating your documents.

In the stage one investor data room should be your business’s bylaws and articles of organization. Also include business certificates, Tax ID http://dataroomnote.com/on-premises-vs-off-premises-database-the-difference/ numbers, and any other relevant documents. Include any market research and competitive analyses that pertain to your business.

Include your most recent pitchdeck in the data room. This will allow investors to quickly reference the numbers and projections that you have shared with them during your presentation and due diligence. It is also recommended to include an update to investors to provide investors with a brief overview of how your company is progressing.

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