A data room is a secure online platform that allows the transfer of sensitive information in a due diligence process. Data rooms are perfect for any high-risk business venture, whether you’re preparing for an M&A deal or closing an investment helping to facilitate another high-risk transaction. Users can access and share documents while ensuring the security of the documents.
Investors will need to review important corporate documents during the due diligence phase. This includes reviewing contracts, shareholder agreements, etc. This exchange of information may be difficult and time-consuming when it is done in an email chain or shared drives. However, a virtual data room allows legal teams and other stakeholders to securely collaborate on important documents.
As a founder, it is essential to understand what investors are looking for from your data space in order to provide them with speed and efficiency. There are a few essential items you can incorporate into your data room that will help you stand out.
1. Team Information
The most frequent request from investors is a list of current team members and their titles. If you can present this in a short section it will speed up the process much more efficient.
2. Competitive Analysis
Investors also be looking to understand the strengths and weaknesses of your competition. It will show your research and improve the process if you include a competitive analysis of the top competitors.
