A data room is an online platform that is secure and allows the transfer of sensitive information in a due diligence process. Data rooms are perfect for any high-risk business activity such as preparing for an M&A deal or closing an investment, or facilitating another high-stakes transaction. Users can access and share documents while maintaining the security of these documents.
During the due diligence phase of any business transaction, investors should review a variety of important corporate documents like contract review as well as shareholder agreements and more. If the information is shared via email or shared drives it could be time-consuming and difficult. A virtual data room allows the legal departments and other stakeholders to work together securely on important documents.
As a founder it’s crucial to know what investors expect from your data room, in order to provide them with speed and efficiency. There are a few important things you can include in your data room that will help you stand out.
Table of Contents
1. Team Information
Investors often ask for an overview of the current team members’ titles. This can speed up the process when you provide it in a brief section.
2. Competitive Analysis
Investors also seek out the strengths and weaknesses of your competitors. It will show your research and make the process easier when you include a competitive analysis of the top competitors.
