A data room is an online platform that is secure and facilitates the sharing of sensitive information during a due diligence process. When you are preparing for a M&A transaction or closing an investment or facilitating other high stakes business operations data rooms permit users to easily share and access documents while ensuring the security of those documents.
Investors are likely to want to look over important corporate documents during the due diligence phase. This includes contract reviews and shareholder agreements, among others. If the information is shared via shared drives or email it could be laborious and difficult to. A virtual data room enables legal departments and other stakeholders to collaborate in a secure way on important documents.
As founders, it’s crucial to understand what investors are looking for from your data room so that you can provide it quickly and efficiently. There are some key items you can include in your data room that will help you stand out.
1. Team Information
The most frequent request from investors is for a list of he said current team members and their job titles. This can help speed up the process if you are able to provide the information in a short section.
2. Competitive Analysis
Investors are also likely to seek out the strengths and weaknesses of your competition. This will prove your research and improve the process when you include a competitive analysis of your most prominent competitors.