Investors need a lot of information to make an informed choice about investing in your startup. The more information you can provide to them, the faster they’ll be able go through it and take an informed decision. You should have all the key documents in your data room before you begin talking to investors (or as early as you can).
In addition to the key investment documents you’ll need for any due diligence, founders should include their most recent investor presentation, basic financials for past performance and projections, cap table, and https://dataroomproducts.com/what-is-due-diligence/ company organization/formation documentation (including business certificates, articles of incorporation, tax information, etc.). Making these documents readily accessible in your investor data room will allow investors to quickly and efficiently create a deal memo or conversation between their partners that could result in an offer on a term sheet.
A deal attribution analysis is a useful document to add to your investor data rooms. This document demonstrates how your team invested in other startups and helps convince potential LPs you are capable of making sound investments. It is possible to include additional information such as intellectual property information contracts with suppliers and customers market research, and much more.
You can add documents to your data room at any point but it’s crucial to only grant access to an investor who is committed to a termsheet. You may slow down the process when you allow an investor access to your data room prior to being ready. They could decide not to invest.