If you’re planning to close a round of funding you must be able to show investors that you have all the elements of your business. This involves sharing documents that show the strengths of your company and its performance. One of the best methods to do this is through a digital investor data room, which enables secure and efficient sharing of sensitive data during due diligence.
But what documents should be included in a data area for investors? What can you tell whether you’re including too many or a few documents? We spoke to Andrea Funsten, a partner at Basecamp Fund, to find out.
The answeris « It depends ». Although every business is unique there are some elements that all founders should be aware of prior to creating an online data room.
Generally, you should include the following documents:
1. Pitch Deck A pitch deck is a high-level summary of the company’s thesis and vision. It also includes the company’s traction, competitive landscape and a competitive landscape. It should also include a draft of the investor’s pitch and a rough timeline of the capital raising process.
2. Financial Information: This comprises both historical and projected financial statements, as well as the sources and reasoning behind the projections. You should also include information about the legal structure of your company including bylaws and articles of organization corporate certificates, and tax information.
Some founders also include additional documents, like executive summaries or internal reviews of the performance of the company. It is important to be aware that adding additional documents may consume time and can slow down the due diligence process.