Due diligence by investors is a vital part of any investment process. The more prepared www.dataroomsource.com/virtual-data-rooms-and-how-progressive-they-are you are, the faster your investors can finish their reviews. An investor data room can make the job easier for all parties.
LPs may want to see a wide range of documents, such as legal contracts, agreements with suppliers and customers, intellectual property market research as well as cap tables financials, and other. Utilizing a virtual data room makes it easier to share these documents with third parties and avoids the potential for duplicated emails or obsolete copies being sent in error. Making these documents available in a logical and easily navigable investor data room can help to show your organization’s professionalism.
The investor data room is an ideal place to save and share your presentation deck (or investor pitch) for investors who are interested in investing. The investor presentation isn’t only a part of supplementary due diligence, but many founders include it to give the context and make it easier for investors to get the information they require.
Some founders also make use of their investor data room as a way to store various sets of information for different types of investors. Some founders, for instance, have an investor data room that is a “draft” or investor data space that they share with investors who have not yet committed to a deal and another set of documents to those who are about to sign an agreement. This lets them control how much information they share and ensures that the right information is reaching the appropriate people.