A data room is an online platform that facilitates secure information exchange during due diligence. If you are planning a M&A transaction, closing an investment, or facilitating other high stakes business processes data rooms permit users to share and access documents while also ensuring the security of those documents.
Investors will need to 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 when it’s handled in an email chain or shared drives. A virtual data room enables departments of law and other stakeholders to work together securely on important documents.
As founders, it’s essential to understand what investors want from your data room, so you can present it quickly and efficiently. There are a few essential items you can incorporate into your dataroom to help you stand out.
1. Team Information
One of the most common requests from investors is for the current list of team members and their titles. This can accelerate the process by providing the information in a short section.
2. Competitive Analysis
Investors also be interested in knowing the strengths and weaknesses of your competitors. This will prove your research and speed up the process if you include a competitive analysis of the top competitors.