A data room is an online platform that is secure and facilitates the sharing of sensitive information during due diligence. Data rooms are great for any high-stakes business activity such as preparing for an M&A deal or closing an investment deal, or helping to facilitate another high-risk transaction. Users are able to easily access and share documents while maintaining the security of these documents.
In the due diligence process of any business deal, investors will want to read various important corporate documents including contract review and shareholder agreements, among more. If the information is shared via shared drives or email it could be time-consuming and difficult. Virtual data rooms allow the 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 deliver quickly and efficiently. There are some key items you can incorporate into your dataroom to help you stand out.
1. Team Information
A common request from investors is for an overview of current team members and their titles. This will accelerate the process by providing it in a concise section.
2. Competitive Analysis
Investors are also likely to want to know the strengths and weaknesses of your competitors. If you can 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 help accelerate the process.