The Perfect Data Room

A Comprehensive Guide for Early-Stage Founders

One of the most common questions I'm encountering when I wish to progress with a promising team, and as I prepare to dive into research, is "What do you want to see in the data room?". If only I had a dollar for every time I heard this question, I would probably have a new bike by now. So, as a service to all early-stage founders, I'd like to share what, in my humble opinion, the perfect data room should look like.

But before we dive in, remember that not all "early-stage" companies are the same. Some are just out of ideation, and some are raising their first outside capital after being bootstrapped for a while. I've tried to create a comprehensive guide, and you as the founder(s) should build your data room to really fit the stage you're in.

Ready? lets go

Legal

In the legal section, include documents such as:

• Fundraising agreements (i.e. SAFE/CLA/SPA)
• Term Sheet
• Founders Agreement
• Articles of Association (AoA)
• Incorporation documents
• IP status of the company (incl. specific pending/granted/applications)
• Non-disclosure agreements (NDAs)
• Employment agreements
• Contractor agreements
• Vendor contracts
• Lease agreements

Having a well-organized legal section not only demonstrates your company's commitment to compliance but also provides investors with the necessary documents to understand the legal structure of your company and their rights as investors.

If you've previously raised (e.g. a FFF round), make sure to add a sub-folder of the past TS and investment agreement(s).

In terms of where to put your IP, think of it as follows:

• if it's in the core of the tech for the company- store any related documents in the Legal section, and in the Tech Brief section, describe the IP in the brief.
• If it's IP that the team has previously developed, or you want to show off their insane capabilities, have them in the Team section.

Finance

Here's where you should include your budget and other financial-related spreadsheets. Investors want to see your financial projections and understand how you plan to use their investment. This differs as a company starts selling, but in general, should include:

• Budget and financial projections/revenue forecasts (incl. key metrics/KPIs)
• Profit and loss statements
• Balance sheets
• Cap table

Investors want to see how you think about capital, metrics, burn, etc.

In addition to your budget, P&L, balance sheet, include any other financial documents that demonstrate the financial health and growth potential of your company.

Tech Brief

Provide a detailed description of the technology you've built or plan to build. Include the following:

• Flowcharts
• Recorded demos
• Technical documentation
• Architecture diagrams
• API documentation
• Product roadmap
• Security and compliance certifications
• IP granted/pending

Investors want to understand the technology behind your product and how it solves a problem or meets a need in the market. Providing detailed technical documentation can help investors understand the potential of your product and the scalability of your technology.

Team

Investors invest in people as much as they invest in ideas. In this section you should include:

• CVs of the founders
• References
• Social media links (LinkedIn/X)
• Articles/research published by the team
• Organizational chart
• Bios of key employees
• Headshots of the team

Highlighting the experience and expertise of your team can help investors understand why your team is uniquely qualified to execute on your business plan and achieve your company's goals.

Decks

Include all your presentation decks here. This should include:

• Customer-facing/Sales decks
• Investor deck
• Product review deck
• Pitch decks

Your presentation decks should effectively communicate your company's value proposition, market opportunity, competitive advantage, and growth strategy.

Competition/Market

Include any research you've conducted on your competitors and the market you're targeting. Investors want to see that you understand your industry and have a strategy for standing out in the market. This may include:

• Competitor analysis (incl. VCs invested, capital raised)
• Market research reports
• Industry trends and analysis
• TAM/SAM/SOM research
• Customer personas and segmentation
• Pricing strategy

In addition to the above, a good thing will be to prepare a list of "Funding and M&A history" (i.e. who raised, how much, when, from whom. Who got bought, for how much, by whom, when) of the market you're targeting. This will help to highlight to investors the "velocity of capital" in your market, which always helps in growing our appetite.

Validation/Traction

Provide data about your paying customers (if you have any) or the validation you've conducted with potential customers, and any other evidence that demonstrates traction and validates your business model. This could include:

• Customer testimonials
• Validation calls summaries
• Case studies
• User acquisition metrics
• Retention and churn rates
• Pilot program results
• Letters of Intent / Purchase Order

Investors want to see that your product or service has market demand and that you have a strategy for acquiring and retaining customers.

Tools to use

Remember to manage permissions right, give access to only those that are relevant (refrain from creating a link everyone can enter through), and time limit the access (control the process. Below are some great tools you can use for your data room:

• DeskFirst: An Israeli data room platform that offers insights and analytics, making it a great choice for early-stage startups.
• Notion: A versatile and user-friendly tool that can be used as a data room, although it may lack some advanced features.
• Google Drive: A simple and widely-used option, but it doesn't provide insights or analytics.
• Box: A secure and compliant data room solution with advanced features like watermarking and permissions management.

Building the perfect data room takes time and effort, but having a well-organized and comprehensive data room can make all the difference when it comes to securing investment.

Good luck!

Feel free to connect with me on LinkedIn if you have any questions or need further assistance.

About 91 Ventures

At 91 Ventures, we invest in Israel’s trailblazing talents who are creating category-defining products. As first-check investors, we focus on Enterprise Software, Infrastructure (including DevTools, XOps, and more), and FinTech. Our support comes from a network of LPs, including leading tech experts, serial entrepreneurs, and global family offices, all dedicated to propelling our portfolio companies to extraordinary success.

We’re actively deploying capital and eager to connect with visionary founders. Don’t hesitate to reach out.