A data room is an online platform for secure information exchange during due diligence. When you are preparing for a M&A transaction, closing an investment, or facilitating other high stakes business operations, data rooms allow users to easily share and access documents, while ensuring the security of these files.
Investors should review important corporate documents during the due diligence phase. This includes reviews of contracts and shareholder agreements, among others. This exchange of information can be difficult and time consuming if it is handled in an email chain or through shared drives. However a virtual data space allows legal teams and other stakeholders to work securely on crucial documents.
As a founder, it is essential to understand what investors want from your data room, in order to deliver quickly and efficiently. There are a few essential items you can include in your data room that will help you stand out.
1. Team Information
The most frequent request from investors is for an overview of current team members and their titles. If you can provide this in a brief section this will make the process much more efficient.
2. Competitive Analysis
Investors also seek out the strengths and weaknesses of your competitors. It will demonstrate your research and make the process easier if you include a competitive analysis of your most prominent competitors.