A data room is an online platform that facilitates sensitive information exchange during due diligence. If you are planning a M&A transaction or closing an investment or supporting other high-risk business operations data rooms permit users to easily share and access files while ensuring the security of the files.
During the due diligence stage of any business deal, investors will want to read several important corporate documents like contract review as well as shareholder agreements and more. If the documents are exchanged via shared drives or emails it could be lengthy and time-consuming. Virtual data rooms allow departments of law and other stakeholders to collaborate in a secure way on important documents.
As a founder, it is essential to know what investors expect from your data room, in order to be able to deliver efficiently and quickly. There are a few key elements you can put in your data room to help you stand out.
1. Team Information
The most frequent request from investors is an inventory of current team members and their titles. If you can provide this in a concise section, it will make the process a lot easier.
2. Competitive Analysis
Investors are also likely to be interested in knowing the strengths and weaknesses of your competitors. It will show your research and speed up the process by including a competitive analysis of the top competitors.