https://www.webdataroom.com/how-to-increase-competence-with-ma-data-room/
A data room is a secure space for sharing confidential business documents with multiple parties involved in a transaction. It is often used in fundraising, M&As, IPOs and legal proceedings. It decreases risk by allowing information to be accessible in a controlled setting and by eliminating the need for time-consuming travel.
Getting Started
The first step in creating a data room is determining what information to include. While every startup has its own needs, the majority of investors will require similar information. Make sure you organize the documents, upload them, and then create folders that are appropriate for your particular transaction. Clearly label the folders and documents to make it easier to navigate. A grouping of similar documents can aid investors to locate the information they require.
Include a section that explains the team, the product and the vision of the company. This will help to build trust in your company and make it more relatable to potential investors. Avoid sharing specific or unorthodox data that might confuse the investor. This can cause confusion, and could signal that you aren’t prepared for the due-diligence procedure.
The most successful fundraises are based off of momentum. This is why it’s important to have the data ready prior to meeting with investors. By following the framework above you will be able to answer 90% of questions that your investors may ask and keep the process moving forward. Do not give out information in small amounts because this could lead to delays in the process of funding.