A data room is a secure online platform that facilitates the exchange of sensitive data during a due diligence process. When you are preparing for an M&A transaction or closing an investment or supporting other high-risk business processes, data rooms allow users to easily share and access files while ensuring the security of those files.
Investors will want to review important corporate documents during the due diligence phase. This can include contract reviews and shareholder agreements, among others. This exchange of information can be a challenge and time consuming if it is handled in an email chain or through shared drives. However a virtual data space permits legal teams and other stakeholders to collaborate securely on critical documents.
As a founder it’s crucial to understand what investors want from your data room, in order to meet their needs quickly and efficiently. There are some key things you can include in your dataroom to help you stand out.
1. Team Information
A frequent request from investors is the current list of team members and their titles. This will speed up the process if you can provide it in a brief section.
2. Competitive Analysis
Investors will also want to know the strengths and weaknesses of your competition. If you could include an analysis of your competitive strengths and weaknesses that is consolidated for your top competitors in your data room, it will demonstrate the depth of your research and will accelerate the process.