A data room is an online platform that is secure and facilitates the exchange of sensitive information during a due diligence process. Data rooms are perfect for any high-risk business activity regardless of whether you’re preparing an M&A deal, closing an investment or helping to facilitate another high-risk transaction. Users can access and share documents while maintaining the security of these files.
In the due diligence process of any business deal, investors will want to review a variety of important corporate documents including contract review, shareholder agreements, and more. This exchange of information may be difficult and time consuming when it’s handled in an email chain or deadbeats.at/ shared drives. However, a virtual data room allows legal teams as well as other stakeholders to securely collaborate on crucial documents.
As a founder, it’s important to know what the investor wants from your data space so you can present it quickly and efficiently. There are a few essential things you can include in your dataroom to help you stand out.
Investors often ask for a list with the current team members’ job titles. If you can provide this in a brief section it will speed up the process much easier.
Investors are likely to want to know about your competition’s strengths and weaknesses. If you can include an integrated analysis of your competition of your most prominent competitors in the data room, it will show the depth of your research and will to speed up the process.