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Due diligence by investors is an essential part of the investing process. It gives investors the chance to dig into the company’s finances and documents to assess risk and decide whether or not to invest in the company. A well-organized and organized data room can help expedite the process, reduce the possibility of misunderstandings or confusion, and increase confidence in the decision of the investor to proceed.

There are a myriad of things to include in a data room, this article will outline some of the basic items that all startups should have ready before pitching to investors.

Investor Updates

Investor updates are a great way to show investors that you’re still following through on your plan and working towards your goals, especially during the initial stages of fundraising. This will also give them an understanding of how far you’ve come since last time they saw you and will help build confidence.

Intellectual Property Assets

Venture Capitalists and Angels are usually interested in the intellectual property of a company which plays a major factor in its value. Include trademarks, patents and other pertinent information even if they’re not directly connected to your product.

Cap Table

A clear cap table reveals to potential investors the percentage of ownership you hold and how it’s broken down. It’s an excellent idea to include your articles of association, which provide legal background to the structure of your business.