A data room is an online platform that is secure and facilitates the sharing of sensitive information during a due diligence process. If you are planning an M&A transaction, closing an investment, or participating in other high-risk business processes data rooms permit users to easily share and access documents, while ensuring the security of the files.
During the due diligence stage of any business deal, investors will want to review several important corporate documents including contract review as well as shareholder agreements and more. If the information is exchanged via email or shared drives, it can be long and complicated. However a virtual data space lets legal teams and other stakeholders to securely collaborate on crucial documents.
As a founder, it is essential to understand what investors want from your data room, in order to be able to deliver efficiently and quickly. There are a few important items you can include in your data room that will help you stand out.
1. Team Information
A frequent request from investors is for a list of current team members and their titles. If you can present this in a concise section this will make the process much easier.
2. Competitive Analysis
Investors are also likely to be interested in knowing the strengths and weaknesses of your competition. It will show your research and make the process easier if you include a competitive analysis of the most successful competitors.
