A data room is an online platform that facilitates sensitive information exchange during due diligence. Whether you are preparing for an M&A transaction, closing an investment, or facilitating other high stakes business activities data rooms permit users to share and access documents, while ensuring the security of those documents.
During the due diligence stage of any business deal, investors will need to look over a variety of important corporate documents such as contract reviews, shareholder agreements, and more. This exchange of information can be a challenge and time consuming when it’s done through an email chain or through shared drives. However a virtual data space lets legal teams and other stakeholders to collaborate securely on critical documents.
As a founder, it’s important to understand what the investor wants from your data room to ensure that you can deliver quickly and efficiently. There are several important things to include in your data room to make you stand out from the crowd:
1. Team Information
A frequent request from investors is an inventory of current team members and their job titles. This will help speed up the process if you are able to provide it in a brief section.
2. Competitive Analysis
Investors are likely to want to know about your competition’s strengths and weaknesses. This will prove your research and accelerate the process if you include a competitive analysis of your most prominent competitors.