Investors require a lot of facts to make an informed decision when investing in your startup. The more information they have, the faster they will be able to review it and make an informed decision. This is why it is important to ensure your data room is loaded with key documents prior to starting conversations with investors (or at least as soon as www.dataroomproducts.com/virtual-data-room-for-businesses/ 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 company organization/formation documentation (including business certificates, articles of incorporation, tax information, etc.). Being able to access these documents in your investor data room will allow investors to quickly and easily assemble a deal memo or conversation between their partners that could lead to the making of a term sheet.

Another important document to keep in your investor data room is a deal attribution analysis that shows how well your team has invested in other startups, thereby helping convince potential LPs that you are capable of making the appropriate investments. You may want to include additional information such as intellectual property information contracts with suppliers and customers as well as market research and many more.

Although you can add additional documents to your investor data room at any time it’s crucial to only give access to documents if the investor is serious about moving forward with a term sheets. It could slow down the process when you allow investors to access your data room before he is prepared. It could be that they decide not to invest.