How to Run a Detailed Investor Data Room

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Investors require a lot of facts to make an informed decision when investing in your startup. The more information they have, the faster they will be able to review it and reach an informed decision. This is why you want to ensure your data room is filled with the most important documents before you begin to talk with investors (or at a minimum, as early as you can).

In addition to the key investment documents you’ll need for any due diligence, founders should include their most recent investor presentation, basic financials for past performance and projections, cap table, and company organization/formation documentation (including business certificates, articles of incorporation, tax information, etc.). The availability of these documents in your investor data room will enable investors to quickly and effortlessly create a deal memo or conversation between their partners which could result in an offer for a term sheet.

Another helpful document to have in your investor data room is a deal attribution analysis that illustrates how your team has made investments in other startups, helping to convince potential LPs that you are capable of making the right investments. You may also want to include additional information, such as intellectual property information, supplier and customer contracts, market research and more.

While you are able to add additional documents to your investor data room at any point however, you should only allow access when the investor is committed to moving toward a term sheet. It may delay the process if you allow an investor access to your data room before they are ready. They could even decide not to invest.


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