Due diligence on investors is a vital part of any investment process. The more prepared you can be, the quicker your investors will complete their review. A data room for investors can make the job easier for all parties.
LPs may require the full range of documents, including legal contracts agreements with suppliers and customers, intellectual property market research as well as cap tables financials, cap tables and more. By using the virtual dataroom, it is easy to share files with third-party companies. This makes it impossible to send duplicate copies or outdated copies. Making these documents available in a dataroomsource.com logical and easily navigable investor data room can help to demonstrate your organization and professionalism.
The investor data room could also be used to store and share an investor pitch with a prospective investor. The investor presentation is not strictly part of due diligence supplementary, but many founders include it to provide an overview and make it easier for investors to get the information they require.
Some founders also choose to use their investor data room as a storage space for different sets of information for different kinds of investors. Certain founders, for instance, have an investor data room that is a ”draft”, investor data room they only communicate with investors who have not yet committed to a deal and another set of documents to those who are preparing to sign an agreement. This enables them to control the amount of information they provide at any given time and ensures that the right information reaches the right people.