https://dataroomtools.com/faq-about-the-due-diligence-process/
A data room for investors is a central repository where documents can be shared with potential investors or financial backers. It allows for rapid, easy and organized access to information without having to send multiple versions of the same document via email. The data room is also secured, with features such as expiring links, watermarks, password protection, and specific permissions that make it simple to control access to sensitive information.
There are a variety of documents that must be made available to prospective financial backers, from the basics like your term sheet or capitalization table and rounds of investment to more detailed due diligence data, including the most recent financial statements (both historical and projected) and human resources documents like founders’ resumes, employment contracts and employee stock options. You should also include technology-related documents like integrations, system architecture, and any existing product documentation.
The more information you add, the more time it will take for investors to review. In addition the more data you provide increases the risk of compromising or misusing sensitive information. To make your move swift, it is important to achieve a balance between your need for clarity and the amount of information you give.