Investors require a large amount of data in order to do their due diligence. Therefore, it is crucial to establish your data room as soon as you can when you begin your fundraising efforts. By putting together all of the necessary documents, you will accelerate your investment deal process.

To make navigation easier to navigate, it is recommended that a document be included with an index of content or table of contents for each section in the data room. Private equity firms will appreciate well-prepared documents that are easy to navigate. In addition, it is important to highlight any information that has changed since the initial upload of a specific document. This indicates that you’re up to date and also demonstrates your willingness to provide transparency throughout the entire process.

Incorporating historical and/or projected financial statements is one of the most frequent requests from investors. This will allow them to verify the accuracy of your numbers and ensure that they are aligned with your presentation deck. Additionally, if you are providing projections of financials, it’s recommended to include the assumptions, sources and reasoning for those projections in the data room.

Some founders opt to include other information such as resumes of key team members and employee stock agreements and even the documentation for hiring. This gives investors a better sense of who the company is and the strength of its staff. Additionally some entrepreneurs may also include an analysis of the market or a growth strategy to show that the company is set to be successful in its field.

data room for investment deal process