A data room is an online database that holds the essential documents required to conduct due diligence prior a funding round, M&A deal or other crucial business events. It simplifies the process by removing duplicate documents, lengthy email threads, and outdated versions sent out by mistake. Investors are able to access the information they require through one dashboard that is easy to navigate.

When you’re raising a seed or Series A round, setting up a data room is an ideal practice that can reduce the hassle of investing and allows entrepreneurs to focus on building their companies. There are a variety of tools and platforms that can be used to create an investor data space, however, it is essential that you select one that offers a simple interface for both you and investors who will be evaluating your materials.

Some of the most important documents to include in your stage 1 investor data room include your company’s bylaws, articles of organization, business certificates, and Tax ID numbers. Include any relevant market research or competitive analysis that pertain to your industry.

Include your most recent pitchdeck in the data room. This will allow investors to quickly refer to the numbers and projections that you have shared during your presentation and due-diligence. You might also wish to include a short update for investors to provide investors with a summary of your company’s progress.


Creating a Data Room for Investors