What Documents Should You Share in Your Investor Data Room?

A data room for investors is a central repository in which documents can be shared with potential investors or financial backers. It allows quick, streamlined and organized access to information without having to send multiple versions of the same document by email. The data room is also protected, with features like watermarks and expiring links as well as password protection and granular permissions that make it easy to manage access to sensitive information.

There are many documents that must be made available to prospective financial backers, from the basics such as your term sheet, capitalization table and investment rounds to more detailed due diligence documents, such as the most current financial statements (both historical and projected) and human resources documentation such as founders resumes, employment agreements and employee stock options. You should also include tech-related documents, such as integrations, system architecture, and documentation for your current product.

The more information you include the more information you include, the longer it will take investors to read. In addition the more information you include, the higher the chance of compromising or misusing sensitive information. To be able to move quickly, it is important to achieve a balance between your need for clarity and the quantity of information that you provide.


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