How to Create an Investor Data Room

Investor data rooms are a space where companies can store files they use for due diligence when raising funds or completing M&A. They allow for easy tracking and share due diligence progress.

When creating your investor data room, it’s important to be thorough and include everything an LP would like to know to be confident that they’re receiving the most accurate information of your fund and you’ve followed the correct procedures. For instance, LPs may want to look up a list of individuals who comprise your team and their backgrounds, a summary of past fund performance and a copy of your current fund agreement, and any other documents you may have on the file that relate to your particular situation.

It’s an excellent idea to present a financial history of your start-up along with forward-looking projections. The majority of LPs will be analyzing this in depth to make sure that the model has been constructed properly, that it is resilient to market volatility, and that you’ve calculated a reasonable valuation of your business. Sturppy is a program that is used by more than 4000 startups to build financial models that are investor-ready.

It’s also important to remember that virtual rooms allow you to configure who is able to access your documents. This means that you can make sure that only those with a need to be aware will be able to access your private information. With tools such as watermarking, expiring links, or the ability to grant permissions at a granular level, you are in charge of who’s viewing your document at any given time.

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