Data Rooms and Capital Raising

Data rooms are believed to be a valuable tool for companies that are being acquired, but they also provide a wealth of benefits to companies seeking capital. A virtual Data Room is a central center that allows you to organize the sharing, management, and organisation of the essential documents that investors will need to review when conducting due diligence. This can accelerate the process of fundraising and give investors confidence in the performance of your business.

Deciding what to include in your investor information room can be a difficult task for founders. Although the needs of each company will differ, the majority of investors are looking for similar items. To help you start with your investor data room, we’ve put together a checklist of common documents to include in your investor data space, together with suggestions for how to organize the documents.

A simple PDF of your pitch, which you can keep in the same folder as the rest of your documents, is an excellent way to quickly engage investors. It is also a great way to demonstrate to investors that you care about investor communication and transparency.

Include previous investor updates to prove that you’ve always considered their feedback and are willing communicate with them, even when the results were difficult. Alongside providing proof of your ability to navigate through difficult times the updates can show the quality of your relationships with your backers and establish confidence in the process of investing. Having tracking functionality within your Data Room helps you to track which investors are engaged with the documents and the time they’re spending in each folder. This will give you a better idea of the level of commitment investors have to investing and give you the information needed to make an informed decision.