The teaser and information memorandum in a capital raise
The teaser is a short, often anonymous summary sent to many investors; the information memorandum is the full document sent to those who sign an NDA. Keep the teaser outside the room or in an open folder, gate the IM behind an NDA, and open diligence folders only to investors who come back with real interest.
Folder index
- 00 Teaser Anonymous summary for wide distribution.
- 01 NDA Click-through or signed NDA required before further access.
- 02 Information memorandum Full IM, watermarked per viewer.
- 03 Financial appendix Historical financials and projections supporting the IM.
- 04 Process letter Timetable, how to submit interest, contacts.
- 05 Management presentation Slides for investors invited to meet management.
- 06 Diligence folders Legal, commercial, technical material for shortlisted investors.
How this raise works
Banker-led equity, debt and project raises commonly follow this two-step path. A one or two page teaser describes the opportunity without naming the company or with limited detail. Interested investors sign an NDA and receive the information memorandum, which covers the business or asset, market, financials, management, the proposed transaction and the process timetable.
The IM is longer than a pitch deck and written to be read without the management team in the room. Debt investors look for cash flow, collateral and covenants; equity investors look for growth, margins and the path to an exit. One IM often serves both, with separate financial appendices.
Because the IM goes to many parties, control matters. Watermarks, view-only access for the most sensitive pages and a clear record of who signed which NDA help when a copy turns up where it should not, and they let the adviser see which investors read the financial section closely.
Best data rooms for this raise
The 16 rooms re-ranked with this raise's weights. Investor tracking carries the most weight here.
- Investor tracking 25%
- Permission control 25%
- Raise workflow 21%
- Investor onboarding 14%
- Cost of a raise 14%
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Folder index for the room
A starting index for this raise. Number the folders so the order survives exports and investors can cite them in questions.
- 00 TeaserAnonymous summary for wide distribution.
- 01 NDAClick-through or signed NDA required before further access.
- 02 Information memorandumFull IM, watermarked per viewer.
- 03 Financial appendixHistorical financials and projections supporting the IM.
- 04 Process letterTimetable, how to submit interest, contacts.
- 05 Management presentationSlides for investors invited to meet management.
- 06 Diligence foldersLegal, commercial, technical material for shortlisted investors.
- 07 ModelFinancial model for final-round investors, view-only where possible.
- 08 Q&AQuestions on the IM and process, per investor.
Features this raise needs
| Feature | Why | Ellty | iDeals | Datasite | Ansarada | Intralinks | Firmex |
|---|---|---|---|---|---|---|---|
| NDA e-sign step | Confidentiality terms an investor must accept in the room before folder one appears. | ||||||
| Dynamic watermarks | Stamps the reader and a timestamp over every page, so a PPM that leaks carries its source with it. | ||||||
| Investor activity log | A per-investor record of opens, pages and minutes, which tells the IR team who is in diligence and who stalled. | ||||||
| View-only files | Files can be read but not saved or printed, and the setting can change mid-raise without a new invite. |
Setting up the room
- 01
Write the teaser to stand alone
Keep it short and avoid details that identify the company if confidentiality matters.
- 02
Put the NDA at the door
Require NDA acceptance before the IM opens, and store the signed copy with the investor's group.
- 03
Watermark the IM
Stamp each copy with the viewer's name and restrict download if your adviser agrees.
- 04
Shortlist by engagement
Use time spent in the IM and the financial appendix, plus indications of interest, to pick the next round.
- 05
Open diligence in stages
Release management slides, then diligence folders, then the model, as investors advance.
Common mistakes
- A teaser so specific that competitors can identify the company.
- Sending the IM before the NDA is signed.
- IM numbers that do not match the model released later.
- One shared group for all investors, hiding who read what.
Calculators for this raise
Or take the four-question quiz and check the raise checklist.
Questions and answers
What is the difference between a teaser and an information memorandum?
The teaser is a brief summary to test interest, often anonymous. The information memorandum is the full document, shared after an NDA, used by investors to decide whether to bid or commit.
Is an information memorandum the same as a PPM?
They overlap. A PPM is the legal offering document for a securities offering, with risk factors drafted by counsel. An IM is a marketing and information document common in banker-led raises and debt deals.
Who prepares the IM?
Usually the banker or adviser, with management supplying content and counsel reviewing it.