How to Create a Data Room for Investors

A data room is an online platform that allows different parties to access and view the same documents. It is typically used to conduct due diligence in mergers and acquisitions, fundraising and corporate restructuring. It is important to research the cloud services that provide storage for data rooms, such as Quoroom or iDeals. Make sure the service you select has templates, methods to organize your files and make sorting them out more easily, bespoke analytics, watermarking documents downloaded, and providing a cyber-secure environment.

When creating an investor data room, founders should think about the types of information investors are searching for. It is generally suggested to include the following sections:

Documents related to company formation/organization They include articles of incorporation (bylaws), business certificates, tax information and any other documents an investor might require to prove the legitimacy of a company.

Financial Information It includes projected and historical financials, as well as the assumptions and sources which were used to construct these projections. Founders may also choose to include whitepapers or pitch decks in this section.

Founders can include an « Other » in the form of any other information investors might require, such as intellectual property, technology stacks, and more documentation about the company. Investors will feel more confident if the data room is well-organized, complete and organized. This could result in quicker deals and more value.