A data room is an online platform that facilitates secure information exchange during due diligence. It doesn’t matter if you’re preparing a M&A transaction or closing an investment or supporting other high-risk business operations Data rooms enable users to easily share and access documents while ensuring the security of the files.
In the due diligence phase of any business transaction investors will want to read a variety of important corporate documents like contract review as well as shareholder agreements and more. This exchange of information may be difficult and time consuming if it is handled in an email chain or through shared drives. A virtual data room allows legal departments and other stakeholders to work together securely on important documents.
As founders, it’s crucial to understand what investors want from your data he said room so that you can deliver quickly and efficiently. There are a few important items you can incorporate into your data room to make sure you stand out.
1. Team Information
Investors often request a list of current team members’ names and job titles. If you can provide this in a brief section, it will make the process much faster.
2. Competitive Analysis
Investors are also likely to seek out the strengths and weaknesses of your competition. If you are able to include an analysis of your competitive strengths and weaknesses that is consolidated for your top competitors in the data room, it will prove the depth of your research and will to speed up the process.
