Due diligence for investors is an an important part of any investment. The more prepared you are, the quicker your investors can complete their review. A data room for investors makes the process much simpler for everyone involved.

LPs might require many different documents, such as legal contracts agreements with customers and suppliers, intellectual property market research and cap tables financials, and many more. With a virtual dataroom, it is easy to share files with third-party companies. This also means that you can avoid sending duplicate copies of documents or those that are out of www.dataroomsource.com/virtual-data-rooms-and-how-progressive-they-are date. These documents can be displayed in a well-organized easy-to-use investor datarooms to show professionalism and organization.

The investor data room is the perfect place to store and share your presentation deck (or investor pitch) to a potential investor. While the investor presentation isn’t part of the due diligence supplementary data, many founders include it as a way to provide context and ease investors’ access to information they need.

Some founders use their investor data rooms to store different information for different types of investors. For instance there are some founders who have an “draft” investor data room which they only share with investors who haven’t yet signed commitments, and a second set of documents for investors who are near to signing a deal. This allows them to control how much information they share and ensures the correct information is getting to the appropriate people.