A data room is an online platform that is secure and allows the exchange of sensitive information during a due diligence process. When you are preparing for a M&A transaction, closing an investment, or facilitating other high stakes business processes Data rooms enable users to share and access files while ensuring the security of those files.
During the due diligence phase of any official source business transaction, investors will need to look over a variety of important corporate documents such as contract reviews and shareholder agreements, among more. If the information is exchanged via email or shared drives it can be long and complicated. However the use of a virtual data room permits legal teams and other stakeholders to collaborate securely on important documents.
As a founder, it’s vital to understand what investors want from your data space so you can present it quickly and efficiently. There are many important aspects to include in your data room to make you stand out the crowd:
1. Team Information
Investors often request a list with the current team members’ names and job titles. This will make the process easier if you can provide it in a concise section.
2. Competitive Analysis
Investors will also be looking to understand the strengths and weaknesses of your competition. It will demonstrate your research and make the process easier when you include a comparative analysis of the most prominent competitors.