A data room is an online platform that facilitates secure information exchange during due diligence. Whether you are preparing for a M&A transaction or closing an investment or facilitating other high stakes business processes, data rooms allow users to share and access files while ensuring the security of the files.
Investors are likely to want to look over important corporate documents during the due diligence phase. This can include contract reviews as well as shareholder agreements. If the documents are exchanged via shared drives or email it can be lengthy and time-consuming. A virtual data room allows legal departments and other stakeholders to collaborate securely on critical documents.
As a founder you need to understand what investors are looking for from your data room to be able to be able to deliver efficiently and quickly. There are a few important items you can incorporate into your data room to help you stand out.
1. Team Information
The most frequent request from investors is for a list of current team members and their titles. If you can present this in a brief section, it will make the process much faster.
2. Competitive Analysis
Investors will also be interested in knowing the strengths and weaknesses of your competition. If you could include an integrated analysis of your competition of your top competitors in the information room, it can demonstrate the depth of your research and help speed up the process.