How to Run an Investor Data Room

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The right investor data rooms could be vital to the acquisition or fundraising process of your business. It helps build trust, which leads to better informed decisions and closing deals. The key is to be intentional about what you do and when you share it.

You’ve been through a great pitch session and subsequent follow-up discussions with a VC or investor who’s requested more data and access to your investor data room. In this stage investors typically look for specific information on your business model as well as financials and traction. They could also request your latest pitch deck or a customized version of it.

It is beneficial to include additional documents in your data room, aside from the standard requests. This will help investors better understand your company. This could include a competitive analysis or a list of customer references along with amended and revised article of incorporation. Including previous investor updates is also a great way to show that you value transparency.

Everyone will benefit from creating a data room that is easy for investors to navigate. Consider putting your most important documents at the front, and less-important ones behind. It’s also important to limit access to only those who require it, adhering to the principle of least privilege. This means that only those who are required to look over the document can access it, and prevent other parties from downloading and altering your sensitive files. FirmRoom offers a number of features that can help you manage the narrative. For example you can block members from each other and cover the original upload dates.