Investors require a huge amount of information to do their due diligence. Therefore, it is essential to set up your data room as fast as you can once you begin your fundraising efforts. You can accelerate the investment process by including all required documents.

To make navigation easier To make navigation easier, it is recommended a document be included with an data room for investment deal process index of contents or table of contents for each part of the data room. Private equity firms will appreciate well-prepared documents that are easy to navigate. In addition, it is crucial to highlight any information that has changed since the initial upload of a specific document. This demonstrates that you are on top of things and demonstrates your ability to be transparent throughout the entire process.

including historical and/or anticipated financial statements is one of the most requested items from investors. This allows investors to check the accuracy of your numbers and ensure they are in accordance with your presentation deck. In addition, if you’re providing projected financials, it’s a best practice to include the assumptions, sources and logic behind the projections in the data room.

Some founders decide to include other information such as resumes of the key team members and employee stock agreements and other documents regarding hiring. This can help investors gain a better idea of the company and its employees. In addition, some entrepreneurs may include an analysis of their market or growth strategy to demonstrate how the company is set to succeed in its business.

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