A data room is an online platform for secure information exchange during due diligence. Data rooms are ideal for any high-risk business venture such as preparing for an M&A deal or closing an investment, or facilitating another high-stakes transaction. Users can quickly access and share documents while ensuring the security of the files.
In the due diligence phase of any business deal, investors should review a variety of important corporate documents including contract review and shareholder agreements, among more. If the information is shared via shared drives or emails it can be long and complicated. A virtual data room allows the legal departments and other stakeholders to collaborate in a secure way on important documents.
As founders, it’s crucial to know what investors want from your data room so you can present it quickly and efficiently. There are several key things to include in your data room that will help you stand out from the rest of the pack:
1. Team Information
Investors often ask for an updated list of current team members’ names and job titles. If you can include this information in a brief section it will make the process a lot easier.
2. Competitive Analysis
Investors will also be looking to understand the strengths and weaknesses of your competitors. If you could include an analysis of your competitive strengths and weaknesses that is consolidated for your top competitors in the data room, it will prove your depth of research and speed up the process.