A data room is an online platform that facilitates sensitive information exchange during due diligence. It doesn’t matter if you’re preparing a M&A transaction or closing an investment or supporting other high-risk business operations, data rooms allow users to easily share and access files while ensuring the security of those files.
In the due diligence process of any business transaction, investors will need to look over the various corporate documents including contract review, shareholder agreements, and more. If the documents are exchanged via shared drives or emails it can be a lengthy and time-consuming. Virtual data rooms allow lawyers and other parties to work in a secure manner on crucial documents.
As founders, it’s crucial to know what investors are looking for from your data room, so that you can deliver quickly and efficiently. There are a few essential items you can include in your data room to help you stand out.
1. Team Information
One of the most common requests from investors is for an overview of current team members and their titles. If you could provide this in a concise section it will speed up the process much faster.
2. Competitive Analysis
Investors are likely to be interested in knowing your competitor’s strengths and weaknesses. If you can include an overall analysis of the competitive landscape of your top competitors in the information room, it will demonstrate the depth of your research and to speed up the process.