A data room is an online platform that is secure and facilitates the exchange of sensitive data during due diligence. When you are preparing for an M&A transaction, closing an investment, or supporting other high-risk business transactions Data rooms allow users to easily share and access documents, while ensuring the security of those files.
During the due diligence phase of any business transaction investors will need to look over a variety of important corporate documents, including contract review agreements with shareholders, contract review, and more. If the documents are exchanged via email or shared drives it can be laborious and difficult to. A virtual data room allows legal departments and other stakeholders to collaborate securely on critical documents.
As a founder, it’s essential to understand what investors are looking for from your data room, in order to be able to deliver efficiently and quickly. There are a few key items you can incorporate into your data room to make sure you stand out.
1. Team Information
Investors frequently request an updated list of current team members’ jobs. If you can present this in a short section it will make the process much faster.
2. Competitive Analysis
Investors also seek out the strengths and weaknesses of your competitors. It will show your research and make the process easier when you include a competitive analysis of your most prominent competitors.
